Week 6 Lecture slides

Week 6 Lecture slides - LAW101 Law, Business & Society...

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1 LAW101 Law, Business Week 6 Contract Law - the elements Pt 1 What is a contract? An agreement which the courts will enforce What is a contract? “Contracts are a fundamental part of people’s daily lives and form the basis of commercial law.” –Some basic examples: Origins of contract law “If commerce was to flourish there was a need for the mechanism to support it and that mechanism was the law of contract.” Andy Terry and Des Giugni, (4 th ed, 2005) 261. Sources of contract law • Developed by courts over several hundred years • Sources spilt into two: common law including equity, and legislation Purpose of contract law • To provide certainty and predictability in the planning of commercial ventures • To determine rights and obligations of the parties to a contract • Where disputes arise, to enable the conflicting interests of parties to be resolved
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2 Contract law • Terms ‘contract’ and ‘agreement’ are often used to mean the same thing. • Traditional definition of contract is: ‘a legally enforceable agreement’. • An agreement is NOT necessarily a contract. Contract law Contract defined • A contract can be defined as: An agreement concerning promises made between two or more parties with the intention of creating certain legal rights and obligations upon the parties to that agreement which shall be enforceable in a court of law .” Contracts BASIC ELEMENTS OF CONTRACT FORMATION Contracts Then, TEST FOR VALIDITY Classification of contracts Contracts classified by promise • Depending on what the offeree must do to accept the offer’s offer, may be classified as: Bilateral - both parties have to perform their promises; ‘a promise for a promise’; Unilateral - the offeror still has to perform their part of the bargain; ‘it is a promise for an act’. Classification of contracts Contracts classified by enforceability: Valid - a contract which the law will enforce. Voidable - the contract remains valid and binding unless and until it is repudiated by the injured party. Void - no legal rights or obligations from the outset (void ab initio).
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3 Classification of contracts Contracts classified by enforceability: Unenforceable - valid on its face but no legal action can be brought on the contract, often because of a procedural defect. Illegal - the purpose of the contract contravenes a statute or the common law, and generally treated as void. Classification of contracts Contracts classified by performance: Executed contracts - where both parties have completed their respective obligations at the time of making the contract; Executory contracts - relating to an agreement where one of the parties promises to do, or refrain from doing, something in the future. Classification of contracts
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This note was uploaded on 06/16/2010 for the course LAW 121 taught by Professor Aresa during the Spring '08 term at Uni. West.

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Week 6 Lecture slides - LAW101 Law, Business & Society...

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