INTRODUCTION When the word “contract” is mentioned, there is a tendency for many people to see...
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Transcript of INTRODUCTION When the word “contract” is mentioned, there is a tendency for many people to see...
INTRODUCTION
When the word “contract” is mentioned, there is a tendency for many people to see
this as some form of formal written document. When asked how often they
enter into a contract, many would say only occasionally, as when they purchase a car, a house or enter into a loan agreement with
the bank. In other words, ‘contract’ is associated with a narrow range of activity
involving lawyers, documents and agreements concerning things of substantial
value.
An agreement made between two or more person whereby the parties to the agreement
are bound by a LEGAL RELATIONSHIP.
ALL CONTRACTS
ARE AGREEMENT
BUT
NOT ALL
AGREEMENTS
ARE
CONTRACT!
The Latin phrase consensus ad idem (consensus as to the same thing) describes this concept of agreement. The essence of the
phrase is that the parties to contract must have “meeting of minds”
TYPES OF CONTRACT
SIMPLECONTRACTS
SPECIALTYCONTRACTS
ORAL WRITTENWRITTEN
(DEED)
Contract forSales of Goods
Contract forSupply of
Goods
Contract of Service
Contract forServices
½ Oral & ½ Written
There is no necessity for a contract to be in writing. A
contract can be made orally, in writing or it could be a
combination of both oral and written. Only contract involving the sales and
transfer of land needs to be in written form.
Understanding Contract
What is the What is the Agreement?Agreement?
What is withinWhat is withinThe The
Agreement?Agreement?‘‘Terms’Terms’
What defects What defects In the In the
Agreement?Agreement?‘‘Vitiating factors’Vitiating factors’
How the contractHow the contractIs Is
Discharged?Discharged?
Remedies Remedies Available!Available!
What is the agreement?• Offer
– Unilateral offer– Bilateral offer– Invitation to treat
• Acceptance– General rule – Postal rule
• Intention to create Legal Relations– Social and domestic agreement– Commercial agreement
• Consideration– Executed – Executory– Past
• Capacity to Contract
What is within the agreement?TERMS
•EXPRESS TERMS•IMPLIED TERMS•INNOMINATE TERMS•EXEMPTION CLAUSES/EXCLUSION CLAUSES
•CONDITIONS•WARRANTIES
What Defects in the Agreement?• Misrepresentation
– Fraudulent– Innocent– Negligent
• Mistake– Common mistake– Mutual mistake– Unilateral mistake– Non est factum
• Duress • Undue Influence• Illegality• Contract in Restraint of Trade
VITIATING FACTOR
Discharge of Contract
•Performance.•Agreement.•Breach (aka:
repudiation)•Frustration.
VOID
VOIDABLE
SPECIFICPERFORMANCE
INJUNCTION
QUANTUMMERUIT
REMEDIES