Overview of Contract Law Contract law is about the enforcement of promises, transactions and agreements. Its rules decide which agreements are legally binding contracts, what the terms and conditions of the contract are, and what their implications are, in the context of a dispute before the court. Contract law determines whether there is a legally enforceable agreement. Its principles decide, […]
Offer An offer is a clear statement addressed by one party to another, of the terms on which the offeror is willing to contract if the person offered decides to accept. Acceptance, in the legal sense, is a clear and definitive acceptance of the terms of the offer by the party to whom it is addressed. An acknowledgement of receipt […]
Nature of Acceptance I An offer must be accepted in order to form a contract. The acceptance must take place while the offer is “live”. The acceptance may be by words, conduct or by other means. The manner of acceptance must be consistent with what the offer contemplates. For example, delivery of the goods in response to a request may […]
Requirement for Consideration “Consideration” is usually a requirement for a legally binding contract. Each party to the contract must give consideration. It is given at the request of one to the other (in the offer) and agreed to or accepted by the other in exchange. Consideration refers to the exchange or bargain which is essential for a binding contract. It […]
Parties Contracts may be entered by and between natural persons or so-called legal persons, usually companies. They may be entered between businesses and consumers (“B2C”). The business may be a person, as partnership or company. The consumer must usually be a natural person. Contracts may be entered be entered between businesses/traders (“B2B). Contracts entered by and between private persons / […]
Presumption that Legal Relations Not Intended Notwithstanding the presence of offer, acceptance, and consideration, the courts in some contexts hold, that there is no intention to create a legal relationship. Most of these cases involve particular circumstances from which the courts draw a presumption that no such intent is present. It is entirely possible, however, that notwithstanding the common presumption […]
Promissory Estoppel Sometimes the strict rules of consideration would lead to injustice. A promise may be made and relied on, but because of the lack of consideration, it is not legally enforceable. Where there is a promise or representation of fact or definite intention, given in circumstances where the promised person does not give consideration, the discretionary principle of promissory […]
Overview Most contracts do not need to be in writing in order to be binding. It is, however, often desirable that an agreement is set out in writing to avoid doubts and disputes. The expression that a verbal contract “is not worth the paper it is written” embodies the practical difficulties that may arise in some cases in proving the […]
Consumer Sales There are a number of instances where modern consumer protection legislation, requires that the contract be in writing and set out certain content. A signature may or may not be required. Consumer contracts negotiated away from the trader’s business premises and contracts concluded by distance communication such as internet sales are subject to specific detailed requirements. Certain information […]