L2. What is a contract?
An agreement giving rise to obligation which are enforced or recognised
by law. (Treitel)
Both parties are voluntarily undertaking on obligations between
themselves. Those obligations, should one or the other party fail to meet
them, can be enforced by the courts.
One court can take the other to court and sue them and claim a remedy
for breach of contract.
Contracts are legally enforceable agreements which represent a vehicle
for planned exchanges. (Poole)
Highlights how contract law can assistant parties in how they organise
their affairs.
E.g, no body will want to do anything for a business unless being told their
role, what they have to do, and for how much for.
Contracts are essential for business affairs. It forms the foundation for
much of what you do. Contract law is also essential for the navigation of
our daily lives.
Contracts ensure things happens. It enables parties to look down the line
of contract and know what would happen when, where and how.
Contracts facilitates forward planning. If you want to enter into some sort
of transactional project with someone you must have a contract which
facilitates what’s going to happen in each stage.
Contracts describes each party’s role/obligations and fixes standards. All
contracts highlight what needs to be done and to what standard and for
how much.
Contracts also allocates risk. It highlights who is responsible for which
aspect of the contract. One party or both must ensure they have
insurance on the contract to reduce potential risks.
Contracts determines outcome for when things go wrong. “If X breaches
clause Y then the following will happen”. If a specified breach occurs then
a liquidated damaging clause is put into place.
Classic Law of Contact
> Freedom of contract
>Market individualism (facilitating competitive exchange)
>respecting an individual’s ability to negotiate their own rights and
obligations.
Freedom of Contract
The idea that there shouldn’t be any interference by parliament or the
courts or the state in your contracts. It’s a very laissez faire approach (lets
you do what you want). It respects an individuals ability to negotiate their
own rights and obligations. At the heart, the freedom of contract is that
individuals are in the best positions to protect their own interests. 2
An agreement giving rise to obligation which are enforced or recognised
by law. (Treitel)
Both parties are voluntarily undertaking on obligations between
themselves. Those obligations, should one or the other party fail to meet
them, can be enforced by the courts.
One court can take the other to court and sue them and claim a remedy
for breach of contract.
Contracts are legally enforceable agreements which represent a vehicle
for planned exchanges. (Poole)
Highlights how contract law can assistant parties in how they organise
their affairs.
E.g, no body will want to do anything for a business unless being told their
role, what they have to do, and for how much for.
Contracts are essential for business affairs. It forms the foundation for
much of what you do. Contract law is also essential for the navigation of
our daily lives.
Contracts ensure things happens. It enables parties to look down the line
of contract and know what would happen when, where and how.
Contracts facilitates forward planning. If you want to enter into some sort
of transactional project with someone you must have a contract which
facilitates what’s going to happen in each stage.
Contracts describes each party’s role/obligations and fixes standards. All
contracts highlight what needs to be done and to what standard and for
how much.
Contracts also allocates risk. It highlights who is responsible for which
aspect of the contract. One party or both must ensure they have
insurance on the contract to reduce potential risks.
Contracts determines outcome for when things go wrong. “If X breaches
clause Y then the following will happen”. If a specified breach occurs then
a liquidated damaging clause is put into place.
Classic Law of Contact
> Freedom of contract
>Market individualism (facilitating competitive exchange)
>respecting an individual’s ability to negotiate their own rights and
obligations.
Freedom of Contract
The idea that there shouldn’t be any interference by parliament or the
courts or the state in your contracts. It’s a very laissez faire approach (lets
you do what you want). It respects an individuals ability to negotiate their
own rights and obligations. At the heart, the freedom of contract is that
individuals are in the best positions to protect their own interests. 2
