Chapter 4 - Contract Law

  • Created by: Bar29
  • Created on: 13-04-24 22:50

Contract law is the law which determines whether a contract between two or more parties is valid and legally binding

The Following are required to create a contract:

A - agreement

  • offer - an expression of willingness to be bound on specific terms, without further negotiations and must be capable of acceptance
  • Invitation to treat - this is an invitation to another person to make an offer and is not capable of acceptance itself
  • acceptance must be unconditional and communicated orally, written or by action
  • Can be terminated by revocation/cancellation, rejection by offeree, lapse of time/expiration, death of a party

C - consideration

  • each party must give something to the other in support of the contract
  • both parties must provide consideration
  • if both parties do not provide consideration a bare promise is formed and unenforceable
  • Past consideration is not valid
  • Consideration need not be adequate
  • Performance of existing duties is not considered sufficient
  • Illegal acts are not enough consideration

I - intention

  • both parties to a contract must have had the intention to be legally bound
  • Contracts formed…


No comments have yet been made