1/11
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
What is contract?
A legally binding agreement between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others
Duties promised by parties
Doing or not doing certain acts for parties
Giving rights to the other person
contract can exist in
1.oral
2.by conduct (behaviour)
examples of contract by oral
Buying food
Disadvantage of oral conduct
no written record —>uncertainty
ELEMENTS of a legally binding contract
1.Offer and acceptance
2.Consideration (exchange of promise between parties)
3.Intention to create a legally binding relationship (want their contract to be legally enforceable)
4.legal capacity (mature enough/ above 21)
Breach of contract
When one party refuses to perform his contractual duties
Consequence of a breach of contract
sued in court + defendent must pay losses directly caused by the breach (pg 22)
3 types of contracts that is invalid even tho elements of a legally binding contract is present
1.void
2.voidable
3.unenforceable
Void contracts
Contract will act as it has never existed (e.g. goods/monies will return to its original position). Cannot claim damages
Voidable contracts
Stop the contract, usually are parties suffering under the contract due to an inappropriate act committed by the other party
Unenforceable contract
no successful court action however goods/monies exchanged may be kept by the parties.