1LAW101Law, Business & SocietyWeek 9Contract Law-Express & Implied termsFormation of a ContractWe now know the requirements for a legally binding contractare:;;;::::Formation of a Contract•Assuming that a simple contract has been created and that there are no elements that affect its validity – the next question to be considered is:What are the rights and obligationsthat the parties have entered into?•The answer is found in the terms.Contents of the contract• The terms of the contract encapsulate the rights and obligations of the parties. •A termis a legally binding statement or promise.A breach of a term gives rise to an action for breach of contract.Contents of the contractContents of the contractIn negotiations leading up to ‘reaching agreement’, what statements did parties actually maketo each other (ie. expressly- in words and/or writing)?1.Which of these statements were intended to be promissoryin nature (called contractual ‘terms’)2.Which were merely intended to inducethe making of an agreement, but not be promissoryin nature (called ‘mere representations’)
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