Chapter 4 - Contract Law

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…