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Definition: A contract is an agreement that the law will enforce. The aim of a contract is to allocate risk through mutual bargain.
Court's Role: The court assesses the existence of a contract to determine contractual rights.

Definition: An offer is a proposal made by the offeror with specific terms, promising to be bound if accepted unconditionally by the offeree.
Validity of an Offer: Must be communicated to the offeree, specific (not vague), and cannot be an answer to a question or a supply of information.

General Rule: A paper advertisement is generally considered an invitation to make an offer.
Exception: If an advertisement contains a promise to pay or provide a reward, it is considered an offer (unilateral contract).
Examples:
- Company Prospectus: Published by public companies and invites application for shares, leading to an offer upon share allotment.
- Bids in Auction: Call for bids is an invitation to make an offer, with bids considered offers and acceptance at the fall of the hammer.

Lapse of Time: A specified time period can be set by the offeror. If none is specified, the offer lapses after a reasonable amount of time.
Revocation of Offer: The offeror may revoke at any time before acceptance; the offer lapses only when the offeree learns of the revocation.
Rejection by Offeree: The offeree may notify rejection or submit a counter-offer.
Death of Parties:
- If the offeree dies, the offer lapses if it was specifically made to that offeree.
- If the offeror dies, the offer only lapses if the offeree knew about the death, or if the offer involves personal services.

General Rule: No intention is presumed in social arrangements; intention is presumed in commercial agreements.
Binding Social Arrangements: Certain social arrangements may be binding, such as in cases of separation or joint enterprises.
Non-Binding Commercial Agreements: An example includes agreements between trade unions and management or a letter of comfort where parties expressly agree.

Definition: Consideration is the justifiable cause or value underpinning a promise to be binding.
Types of Consideration:
- Executory: A promise made by the promisee.
- Executed: Price paid, acts performed, or detriment suffered by the promise.
- Past: A promise made subsequent to the act.
Past Consideration: Generally not valid to bind a promise except under specific conditions.
Validity Requirements:
- A promise must be supported by consideration to be valid, with exceptions for deeds and the doctrine of promissory estoppel.
- Consideration must not be illegal or immoral and needs to move from the promisee to the promisor.
- Consideration doesn't have to be adequate but must be sufficient; it cannot fulfill existing legal obligations or contractual obligations.

Payment of Lesser Amount: Paying a lesser amount does not satisfy a debt fully, with certain exceptions such as providing something the creditor is not entitled to.
Doctrine of Promissory Estoppel: A creditor cannot back out of a promise to accept a lesser amount as settlement if the debtor relies on that promise.

Defective Contracts:
- Void: No contract exists (no obligations arise).
- Voidable: The contract can be avoided by the affected party.
- Unenforceable: A valid contract that cannot be enforced due to lack of required formalities.

Definition: Misrepresentation is a false statement of fact made by one party before the contract was formed, inducing the other party into the contract.
Types of Misrepresentation:
- Fraudulent Misrepresentation: Knowing the statement is false. Remedies include rescission and damages.
- Negligent Misrepresentation: Made without proper investigation. Remedies include damages for negligence or under the Misrepresentation Act of 1967.
- Innocent Misrepresentation: Made believing the statement was true. Remedies include rescission or damages.

Silence: Silence is generally not considered misrepresentation; a positive statement is required.
Exceptions to Silence: Include contracts of utmost good faith such as insurance and material representations.

Types of Mistakes:
- Common Mistake: Subject matter does not exist.
- Mutual Mistake: Parties are at cross purposes.
- Unilateral Mistake: Concern around the identity of the other party.

Duress: Involves actual or threatened physical violence or economic pressure, making contracts voidable.
Undue Influence: Occurs within a special relationship between parties, rendering contracts voidable.

Definition: Illegal contracts are void from the outset. Common laws prevent contracts that restrain trade or harm marriage.

General Rule: No specific format is required for a contract to be binding; exceptions include contracts made by deed and those required to be in writing.

Minors: May void contracts, except contracts for necessities.
Mental Capacity: Individuals of unsound mind or under intoxicants may avoid contracts.
Corporations: Their capacity is determined by the memorandum of association and the Companies Act of 1985.

Definition: These are binding obligations or promises made orally, in writing, or implied by conduct. Representations are not considered terms.

Conditions: Vital terms central to the contract; breach allows for claiming damages or repudiating the contract.
Warranties: Less important terms; breach only allows for damages, not repudiation.
Express Terms: Clearly specified terms agreed upon by the parties; may include price variation, liquidated damages, and exemption clauses.
Implied Terms: Binding to the same level as express terms; developed through courts, customs, or statutes (e.g., Sale of Goods Act 1979, Supply of Goods and Services Act 1982).

Definition: Governs contracts in which the seller agrees to transfer ownership of goods for money.
Implied Terms:
- Seller's right to sell goods.
- Goods should match their description.
- Must meet satisfactory quality and fitness for purpose.
- Sale by sample provisions.

Scope: Relates to contracts for service provision.
Implied Terms:
- Services rendered with reasonable care and skill.
- Services executed within a reasonable time.
- Entitlement to a reasonable fee for the services provided.

Purpose: To exclude or limit liability, conflicting with the principle of freedom of contract.
Judicial Controls: Exemption clauses must be incorporated legally, either through signed documents or presented prior to contract formation.
Interpretation by Courts:
- Contra Proferentum Rule: Ambiguities in contracts are interpreted against the party relying on the clause.
- Main Purpose Rule: Exemption clauses should not defeat the contract's main purpose.

Scope: Restricts business liability to ensure public protection against exemption clauses.
Standard Contracts: Clauses are void for certain defined circumstances and are subject to a test of reasonableness.