As therefore a contract contains promises between two

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Unformatted text preview: ons 12 Contract defined The law of contracts A contract can be defined as: • Therefore, a contract: Contains promises Between two or more parties - Promisor: person who makes promise - Promisee: person to whom promise is made - Who intend to be legally bound “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.” • Making it enforceable by law 13 13 14 Contract and Agreement Contract and Agreement • Terms ‘contract’ and ‘agreement’ are often used to mean the same thing • An agreement is NOT necessarily legally binding • An agreement is not necessarily a contract • Traditional definition of contract is: ‘a legally enforceable agreement that is legally binding’ See Latimer ¶5-010 15 16 Contract and Agreement Essential elements of a contract Q: When does an agreement become a contract? A: When it becomes LEGALLY ENFORCEABLE. • Intention to enter into a legally binding contract • “Agreement” Offer Acceptance • Consideration (or price) BUT: when does this occur? 17 18 Other elements for a valid contract Intention to create legal relations • Legal capacity There must be evidence that the parties INTENDED to • Genuine consent make a legally enforceable contract: to be discussed further in next week’s lecture • Legality of purpose • Any formal/procedural requirements must be satisfied See...
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This note was uploaded on 03/11/2014 for the course LEGT 1710 taught by Professor Leena during the Three '10 term at University of New South Wales.

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