Contract_law_part_One complete study guide

INTRODUCTION TO THE LAW OF CONTRACT .1 Law of contract is part of Private law under the laws of obligations What is an obligations  It is a juristic bond[ bonds to which the law attaches its consequences]  In terms of which the party[s]on the one side have a right to a performance.  and the party[s]on the other side have a duty to render that performance. Entitled to a performance performs Quid pro quo baby  Civil obligation is an enforceable agreement can be enforced in a court of law.  Natural obligation does have some legal effect: it’s a legal relationship as apposed to a moral relationship. A contract is an agreement concluded between by or more persons[ can not be a unilateral agreement] with the serious intention of creating legally enforceable obligations  Agreements creating obligations[ general agreements ] : agreements of this nature are nothing but contracts.  Agreements extinguishing a debt : terminates the obligation .e.g. release from a debt  Real agreements : is an agreement whereby a right is transferred. E.g. when you by a house  ‘Gentleman's agreements’: are not enforceable because there is no animus contrhendi they are binding in honour only. Agreements like marriage are sui generis they are more than juristic acts because 1. Consensus: between the parties 2. Capacity: parties must have the requisite capacity 3. Certainty: the agreement must be definite or determinable. 4. Possibility: of performance. 5. Legality; must be lawful. 6. Formalities: must be complied with. BASIS OF CONTRACT .2 The basis of a contract is consensus . This can be achieved in any of the two ways below. Actual Subjective agreement [Consensus] An agreement is said to have been achieved if there is a meeting of the minds. Subjective consensus is achieved where parties involved: 1. Seriously intend to contract 2. Are of one mind regarding the material aspects of the contract. These include 1. Terms and conditions 2. Identity of parties 3. Consciousness of the fact that minds have been met. Apparent approach[ objective approach] .......................................continued...............................................