blaw09a - Elements of Law - Part One Part III Contract Law...

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Unformatted text preview: Elements of Law - Part One Part III Contract Law Unit 9 Contract Formality And The Requirement Of Writing © 2007 Captus Press Inc. Module 1 Formal and Simple Contracts © 2007 Captus Press Inc. © 2007 Captus Press Inc. 1 Elements of Law - Part One Simple and Formal Contracts A simple contract may be in writing or it may be oral, but does not have to meet specific formality requirements A formal contract is in writing and sealed by any party who is a promisor, and who is to be bound by a promise Formal contracts are also called deeds, and in English law, covenants. Module 2 The Statute of Frauds and the Requirement of Written Contracts © 2007 Captus Press Inc. © 2007 Captus Press Inc. 2 Elements of Law - Part One Contracts that must be in writing under the Statute of Frauds Contracts by an executor of an estate to pay the debts of the estate from personal funds Contracts by a person to guarantee the debts of another or be responsible for the tort obligations of another Contracts of marriage where consideration is promised to one who agrees to marry Contracts for the sale of land or affecting any interest in land Contracts for future performance where performance is not to occur within a year of the making of the contract. Guarantors A guarantor is only responsible for a debt he or she guaranteed after the primary debtor has failed to repay the debt A co-signor of a loan, or one who is jointly liable is a primary debtor and is equally responsible for payment along with the other debtor. © 2007 Captus Press Inc. 3 Elements of Law - Part One The Statute of Frauds and contracts conveying interests in land Contracts conveying an interest in land must be in writing to be enforceable Contracts which convey some interest in land, but are primarily about something else need not be in writing to be enforceable. The Statute of Frauds and contracts conveying interests in land (cont’d) Contracts which convey an interest in land may be enforceable even though the contract is oral, if the party relying on the promise of transfer does some act that benefits the other party if The acts performed are done only with respect to the promise to convey an interest in land Enforcement of the requirement of writing would perpetrate a fraud on the party relying on the promise to convey an interest in land The party relying on the promise must show it conveys a legal interest in land and not something less, like an occupational licence Aside from the requirement of writing, there is a valid and enforceable agreement © 2007 Captus Press Inc. 4 Elements of Law - Part One The Statute of Frauds and Contracts of Future Performance Contracts for future performance must be in writing to be enforceable if: The contract by its nature cannot be performed completely within the year in which it is made. The contract cannot be terminated on notice within the one year period after the making of the contract. Module 3 Technical Requirements of the Written Memorandum © 2007 Captus Press Inc. © 2007 Captus Press Inc. 5 Elements of Law - Part One Technical requirements for written contracts Identify the parties to the contract by name or by description Identify the terms for the contract, including the offer that has been accepted and the consideration to be given Be signed by the party whose promise is being enforced; it is not necessary to have the other party’s signature if the agreement is not being enforced against them and Include a printed or stamped signature which may suffice in place of an actual signature, Legal consequences of the use of a seal on a contract A contract under seal is enforceable even if there is no consideration A contract under seal is enforceable for much longer than an ordinary written or oral contract would be. In most provinces, a contract under seal is enforceable for 20 years, rather than 6 years for ordinary contracts. © 2007 Captus Press Inc. 6 Elements of Law - Part One Parol evidence rule If the contract is in writing, and the language of the contract is clear, then on other oral or written evidence can be used to interpret, vary or contradict the contract. Exceptions to the parol evidence rule If the language of the written agreement is unclear or ambiguous, oral evidence or other written evidence may be used to assist in interpretation If there is a collateral contract, it may be used to interpret and modify the main written agreement © 2007 Captus Press Inc. 7 Elements of Law - Part One Exceptions to the parol evidence rule (cont’d) If there are trade customs or conventions usually incorporated into a particular type of contract and it is inadvertently left out, then evidence of the custom may be used to prove the omission. If the parties have agreed to a condition precedent to the performance of the main contract in a separate agreement, the party relying on the condition precedent may give evidence of the previous agreement to avoid performance of the main contract. Module 4 The Sale of Goods Act and the Requirement of Writing © 2007 Captus Press Inc. © 2007 Captus Press Inc. 8 ...
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