Law of Contracts

Elements of a Contract

Agreement

Intention

Capacity

Convent

Consideration

Legality of Purpose

Legality of Form

Agreement

For an agreement to exist there must be a clear, unconditional and complete offer made by one part and accepted by the other party to a contract, offer and acceptance

termination: revoked, rejected, lapse of time or death

Invitation to Treat

Invitation to make an offer which can then be accepted or rejected. Price tags in a car dealership.

Intention to Contract

Irish contract law assumes all business agreements are intended to be legally binding while all social and private agreements are not.

Capacity

All people and businesses have the legal ability to enter into a contract except those under 18 and mentally incapacitated.

Consent to Contract

Must be voluntarily. Invalid if put under pressure, genuine mistake is made, parties are dishonest.

Consideration

Each party must give something of value to the other party.

Legality of Purpose

Must be for a legal purpose e.g. fireworks are illegal

Legality of form

Must be drawn up in the correct legal format (orally written or by conduct)

Termination of a Contract

Performance

Agreement

Frustration

Breach of Contract

Performance

A contract ends when both parties complete their side of the contract exactly as set out

Agreement

A contract ends when both parties mutually agree to end it even if it has not been fulfilled

Frustration

When an unforeseen event arises that prevents it being completed e.g. covid or extreme weather or death

Remedies for breach of contract

Compensation

Rescind the Contract

Specific Performance

Caveat Emptor

Let the buyer beware; use common sense

Non legislative methods to resolve consumer conflict

Negotiation

Letter of complaint

Assistance from a third party

Legislative Methods for Solving Consumer Conflict

Sale of goods and supply of services act 1980

Consumer protection act 2007

Competition and Consumer Protection Commission

Ombudsman

Small Claims Court Procedure

Sale of Goods and Supply of Services Act 1980

Rights of Consumers when Purchasing a good; merchantable quality, purpose intended, as described, match sample

Rights when purchasing a service; qualified, skills needed, proper care and diligence, materials used are sound and fit for purpose, use goods of merchantable quality

Remedies for breach: refund, repair, replacement

Retailers responsibility: contract with seller

Guarantees: does not affect consumer rights

Second hand goods: must be fit for purpose intended but not of same quality as new goods. Sold as seen

Inertia selling: illegal to demand payment for unsolicited goods, can keep them after 6 months if the consumer has not prevented the seller from collecting them, after 30 days the consumer contacts the seller and they do not collect

Consumer Protection Act 2007

Prevents consumers from unfair business practices, misleading descriptions, aggressive practices, prohibited practices, price display regulations, price controls.

Competition and Consumer Protection Commission

Informs consumers of their rights, investigates breaches of consumer law, advises the government, personal finance info and education, enforces product safety regulations

Ombudsman

If a consumer cannot resolve a complain within an organisation they can make a complaint to relevant ombudsman. Free of charge. Must have used the complaints process before ombudsman. FSPO Financial Services and Pension Ombudsman deals against financial institutions and pension providers. Mediation and legally binding. Can award compensation. The office of the ombudsman is for public bodies like HSE. May request files and issue a recommendation.

Small Claims Procedure

Up to €2,000, for faulty goods/poor quality production/damage to property. Does not require a solicitor, is quick and cheap (€25)

Application

Small Claims Registrar

Referral to the District Court

Appealing a decision