contract law (MOCKS)

contract

a legally binding agreement which is enforceable by law, such as the buying and selling property, which may or may not have terms and conditions in writing

consent to contract

consent of both parties is required and must be voluntary to ensure the contact is binding , if force/intimidation was used it may be rescinded

offer

a promise to be bound by the offer/contract, if it is accepted properly, it can still be cancelled at any time before the acceptance

acceptance

the acceptance of the terms of the offer can be written or spoken and it must be clear and unqualified, matching the terms of the offer exactly , no counter offers

consideration

this is the acceptance being matched by some advantage or benefit, it must have value and be real, eg money

intention to contract

must be intention to create a legal bargain and both parties must be aware the are entering a legal relationship

capacity to contract

both parties must have legal capacity to contract eg only natural persons and corporate persons can enter contract , legal infants and people of unsound mind cannot

legality of form

if a contract by law is required to be laid down in a specific manner , then it must be laid out n this manner or it will be invalid

legality of purpose

to be legally binding all contracts must have legal purpose , if an illegal contract exists and it is broken no action can be taken

condition

a fundamental / major part of the contract if broken the party can terminate and seek major damages

warranty

minor part if the contract and the injured party cannot terminate the contract and con only seek minor compensation

termination of a contract

when contract is fished and it is no longer legally binding

ways a contract can be terminated

• performance- both ends of contract are carried out

• agreement- both parties agree they would be better off ending the contract

• breach of contract- one party breaker a condition and injured party can seek compensation

• frustration - unplanned events occurred and one party cannot carry out their end

remedies for breach of contract

• sue for damages/ compensation

• specific performance- contract carried out

• remind contract/ cancelled