Topic 3a -Contract Law.ppt - Functions of Law in Society...

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106/10/31 1 Functions of Law in Society Functions of Law in Society and Business--Topic 3 and Business--Topic 3 The Law of Contract The Law of Contract
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106/10/31 2 Learning outcomes Learning outcomes Different types of contract Elements of a contract Terms of a contract Validity of a contract and its vitiating factors
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What is a contract? What is a contract? A legally binding agreement between two or more contracting parties Legally enforceable in the eyes of the law 106/10/31 3
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106/10/31 4 Types of contract Types of contract 1. Specialty contract / deed / contract under seal signed, sealed and delivered enforceable even if lack of consideration must use deed for long leases (i.e. more than 3 years) or transfer of land/flats Deed Vs Doctrine of resulting trust and constructive trust Deed Vs Reliance on doctrine of resulting trust and constructive trust when the name is not included in the deed (Resulting trust: contribution towards the purchase price) (Constructive trust: non-purchase price contributions like household expenses, decoration and interior design fees) 2. Simple contract
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106/10/31 5 Simple contract Simple contract Written E.g. Employment Contract Orally made E.g. Buy a computer from a shop through oral conversation By conduct E.g. Ride in a bus Note that contracts are usually made orally or by conduct, it’s sometimes difficult to prove because of a lack of evidence How to prove such a contract?
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106/10/31 6 Elements of a valid contract Elements of a valid contract Formation Offer Acceptance Consideration Intention to create legal relationships Genuine consent Legality Capacity to contract
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106/10/31 7 The first element: Offer The first element: Offer Offer A define and clear promise to be bound on specific terms If the offer terms are unclear and ambiguous, even if it is accepted, there is no valid contract for an offeree cannot accept on something which is unclear in the first place.
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106/10/31 8 Offer Offer The offer must be communicated to the offeree An offer may be made expressly by words spoken or in writing or implied by conduct It must be made with the intention that it be accepted The offer may be withdrawn at any time prior to acceptances provided that withdrawal is communicated to the offeree
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106/10/31 9 Offer Offer The offer ceases to be effective: --when offer properly withdrawn --when time expires --if no time is stated, after a reasonable time --when a counter-offer is made --upon the death of offeree or death of offeror before acceptance
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106/10/31 10
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