Week 1 - Introduction to Law of Contract11

Contract

An enforceable (legally binding) promise or agreement between parties.

Formation of Contract

The process of creating a contract, requiring offer, acceptance, intention to create legal relations, and consideration.

Breach of Contract

Failure to perform any term of a contract without a legitimate legal excuse.

Consideration

Something of value exchanged between parties in a contract, necessary for the contract to be legally binding.

Intention to Create Legal Relations

The parties’ intention that the agreement they have made should be legally enforceable.

Offer

A proposal by one party to another intended to create a legally binding agreement upon acceptance.

Acceptance

The unconditional agreement to all terms of an offer, forming a contract.

Express Terms

Explicitly stated terms in a contract that outline the obligations of each party.

Implied Terms

Terms not expressly stated in a contract but assumed to be included based on the nature of the agreement.

Vitiating Factors

Circumstances that can invalidate a contract, such as misrepresentation, duress, or undue influence.

Judicial Interpretation

How courts understand and interpret the terms and conditions of a contract.

Standard Form Contracts

Pre-prepared contracts where most of the terms are set in advance with little or no negotiation.

Objective Test

A method used to assess whether a contract has been formed based on outward expressions, not internal intentions.

Mirror Image Rule

States that the acceptance must exactly match the terms of the offer in order for a contract to be formed.

Commercial Agreements

Contracts entered into for business purposes that presume an intention to create legal relations.

Family Arrangements

Personal agreements that often lack legal enforceability as they are based on trust and affection.

Contractualisation of Social Life

The phenomenon where informal arrangements in society become formalized through contracts.

Legal Remedies

The means by which a court enforces a right, imposes a penalty, or makes another court order to compensate for a breach of contract.

Freedom to Contract

The principle that individuals have the right to negotiate the terms of their contracts without excessive interference.

Consumer Protection

Laws designed to ensure fair trade, competition, and the free market, safeguarding buyers' rights.

Civil Law Systems

Legal systems based on codified laws, prevalent in Europe, that differ from common law systems.

Bilateral

contract between two parties where each party commits to fulfill reciprocal obligations.

Unilateral

one party promises a benefit or obligation to another party without requiring a reciprocal promise.

multilateral

anyone can accept the offer