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REGENT BusinessSchoolCommercial Law 201
SECTION 2:LAW OF CONTRACTDefine obligation Differentiate between personal rights and real rights Explain the requirements for a valid contract Understand the ways in which a contract may be breached Briefly explain the remedies for a breach of contract Discuss termination of contracts
LAW OF OBLIGATIONS•What is an obligation?•Law of contract?
ESSENTIALS OF A VALIDCONTRACTThere are eight essentials for a contract to be valid andenforceable:1 The agreement must be lawful.2 The contracting parties must have capacity to contract.3 They must seriously intend to contract.4 They must communicate their intentions to each other.5 The agreement must be sufficiently certain in its terms.6 The parties must be of the same mind as to the subject matter.7 The contract must be possible to perform.8 The agreement must comply with any formalities required for thattype of contract