The Law of Contract

What are the essentials of a valid contract?

• Offer and acceptance

• Consideration- something for something

• An intention to create legal relationships

• Compliance with required formalities where acceptable

• Capacity to contract

• Contract must be legal

What is a Bilateral contract?

Promise made in return for a promise

What is a Unilateral contract?

1 party promises to do something usually in return for completion of an Act.

Other party doesn’t promise perform action but if he does, contracts completed

What are the different types of “Offer”?

• Offeror- makes the offer

• Offeree- accepts the offer

• OFFER- must be CERTAIN & not vague

Termination of an offer

• Revocation- diff if unilateral

• Lapse of time

• Death

• Counter offer

• Acceptance

What is Acceptance?

• Unconditional assent to all terms of offer

• Must be a positive act

• Must be communicated to offeror

Terms of contract can be EXPRESS terms

• ORAL

• WRITTEN

Terms of contract can be IMPLIED terms

• STATUTE

• COURTS

• TRADE CUSTOM

What is Law of TORT?

Concerned with breaches of civil law that cause personal injuries, damage & interference to property & other sorts of personal loss.

What is tort of Negligence?

• Breaches of duty of care causes damage

• Compensation

• Assault, battery

• Usually by awarding monetary damages

What is Negligence?

• Breach of legal duty to take care, results in damage

• Defendant owed claimant a duty of care

• Responsible foreseeable consequences

What is a crime?

• Defendants prosecuted by state in magistrates/crown court

• If found guilty defendants punished by imprisonment, fine etc

What is Tort?

• Civil wrong- something someone does that causes harm to another

• If found liable defendant must pay compensation to claimant

What are the 3 elements of negligence?

• Defendant owed duty of care towards claimant

• Defendant broke duty of care

• Claimant suffered loss/damage as result of breach of duty

What are negligent misstatements?

False statements made carelessly that cause financial loss, person relying on statement suffers a loss

What is employment law (ERA 1996)?

• Laws regulate relationship between employers & employees

• Workers- generally employed part-time/ casual, not entitled sick pay, may not claim unfair dismissal

• Employees- entitled to sick pay, holiday & right to claim for unfair dismissal

What is Contract of employment?

• Employer offers employment

• Considerations present in form of remuneration package provided by employer in return for work of employee

• Business agreement whereby both parties are presumed to intend legal relationships

What are Express terms?

• Specific terms in employment contract that both parties agree to & usually written down

• Employment right act 1996 requires employer provide employee with written statement within 2 months of commencement

• Implied terms don’t need to be written down

What is Past consideration?

• Act/ benefit done before contract/ promise was formed, so it doesn’t count as consideration to make promise legally binding.

• Past consideration is no consideration

• Only valid if done at the promisers request