Chapter 0 - Formation of a Contract_30 slides.ppt -...

This preview shows page 1 - 8 out of 30 pages.

Chapter 1: 1Building Procurement and ContractAdministration (CON4126)K K LeungLLB, RPS(QS), MHKIS, MRICS, MSc, BSc (Hon)Email: [email protected] /[email protected]
What is a Contract ?out
Chapter 1: 2
Chapter 1: 36 Essential Requirements for a ValidContract1) Offer and acceptanceestablishes an agreement between the parties.2) Considerationmust be given by both parties except for contracts underseal.3) Contractual capacityeach party possess the legal capacity to enter into the acontract.4) Genuineness of consentboth parties must intend to enter into legal relations andmust do so in their own free will.5) Form of a contractin some cases, the contract must be in a particular form..6) Legality of objectthe subject matter of the contract must be legal.
Chapter 1: 4Essential Requirements for aValid ContractLacking one or more of the above the contractwill bevoid,voidableorunenforceable.Void contractsare destitute of legal effect.Voidable contractscould be made void at theinstance of one of the parties.a contract which is induced (influenced) by fraud,can be avoided by the party deceived.Unenforceable contractsare valid but areunenforceable at law because of the absence ofeither evidence of the contract or the formrequired by law.under the Limitation Act,a contract that is left idlefor over 6 years cannot be enforced.
Chapter 1: 5Offercontract is formed when the offeree (receiver)unconditionally accepted (without qualification oramendment) the express or implied offer made by theofferor (giver).an expression of willingness to enter into the contractand to be bound by it when accepted by the party towhom it is addressed.may beoral,in writing, orby conduct.by conduct : a bus pulling up to a bus stop andoffering to carry passengers to their destinationsmay be made to one particular person, a group ofpeople or to the world at large
Chapter 1: 6Ending an Offer beforeAcceptance1) an offer willlapsewithin a reasonable time if no specifictime period for acceptance is given by the offeror.Court will decide what is/is not a reasonable timeframe.2) an offer will terminate upondeathof either offeror orofferee.3)Rejection/refusalof an offerorcounter offerMr. A offers to sell has flat for $880,000 and Mr. Brejects but offers $800,000.Mr. A can either accept orreject the counter offer.4) The notice ofwithdrawal/revocationof an offer mustbe brought to the offeree’s attention prior to acceptance
Chapter 1: 7Invitation to TreatDeclaration of Intentionan invitation to negotiate (invitation to make offers)

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 30 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
KIM FUNG CHOW
Tags
Building Procurement and Contract

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture