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Unformatted text preview: ons 12 Contract defined The law of contracts A contract can be defined as: • Therefore, a contract:
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”
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
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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.
- Three '10