Short note on contract law

Introduction to law of contract

There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. For instance, very small children may not be held to bargains they have made, on the assumption that they lack the maturity to understand what they are doing; errant employees or directors may be prevented from contracting for their company, because they have acted ultra vires beyond their power. The general principle is to compensate for actual financial loss. In other words, if a contract specifies acts which a party should not perform, an injunction can be granted to prevent them performing those acts. First, there must be a valid offer made by one party to another party. Its principal use is in contracts for the sale of land but may also be used to compel a sale of shares or debentures. This is the measure of damages. Defences include one party misleading the other, known as fraud in the inducement ; a contract for an illegal activity; or lack of legal capacity where a party is not able to enter into a legally binding contract because that party is not old enough, is suffering from a mental illness that means they cannot fully appreciate the terms of the contract or for some other reason. Four conditions must be met. He can elect to affirm the contract. If the breach of contract arises out of one party's failure to pay the contractually agreed price due under the contract, the creditor should bring a personal action against the debtor to recover that sum. Contract Definition An agreement between private parties creating mutual obligations enforceable by law. The acceptance must be communicated to the offeror. The offer is made by the offeror to the offeree. For instance, where an offer is made in response to an invitation to treat, the offer may incorporate the terms of the invitation to treat unless the offer expressly incorporates different terms.

However, the term may also narrowly refer to conditions at the end of the contract which specify the governing law provision, venue, assignment and delegation, waiver of jury trial, notice, and force majeure. It is uncertain how far the courts will develop this concept. Warranties were enforced regardless of materiality; in modern United States law the distinction is less clear but warranties may be enforced more strictly.

For instance, where an offer is made in response to an invitation to treat, the offer may incorporate the terms of the invitation to treat unless the offer expressly incorporates different terms.

The acceptance must be communicated to the offeror. Instead, the claim may be limited by the equitable doctrine of delay or 'laches'. The aim of such an award is to restore the claimant to the position he would have been in if the contract had never been made, and is therefore known as a restitutory award.

For instance, very small children may not be held to bargains they have made, on the assumption that they lack the maturity to understand what they are doing; errant employees or directors may be prevented from contracting for their company, because they have acted ultra vires beyond their power.

law of contract notes llb part 1

Representations versus warranties[ edit ] Statements of fact in a contract or in obtaining the contract are considered to be either warranties or representations. There is no rule on how much time a claimant has to claim, the amount will largely be governed by what is reasonable in the circumstances.

There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. Private law principally includes the terms of the agreement between the parties who are exchanging promises. In a claim for damages the first issue is remoteness of damage.

Secondly, the court must decide how much money to award in respect of the breach and its relevant consequences.

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An introduction to contract law