Contract
Contract – an agreement between two or more people for either goods or
services that is legally binding.
They can either be written or oral, but a written one is much easier to
inforce
Oral contracts are sometimes known as Parol contracts and contracts in
writing are known as specialty contracts
Contract law is a specific area of law and there are lawyers that specialise
in it
Implied terms –both parties are bound even if they don’t agree to them
Unenforceable clauses - parties cannot include clauses which exclude
them from liability for death or personal injury
Essential elements of a contract
- Agreement
- Consideration (a promise to give, do/not do something in return for a
similar promise)
- An intention to create legal relations
- Compliance – does the contract need to be in writing or can it be made
orally?
- Capacity - Minors, drunken/ inebriated people, mentally disabled, or
Corporations may not have capacity to contract
Not a legal contract
Void contracts – not a contract has no legal effect
Voidable contracts – contracts binding on one party but can have it set
aside by other party. If not set aside the contract is valid
Unenforceable contracts - If one party refuses to carry out their side of the
contract courts will not enforce it. It only causes problems if terms of
contract are breached.
A contract for the sale of land which is not In writing is unenforceable.
Contractual capacity
- Minors, under 18 not legally bound but some exceptions such as contracts
for necessaries.
- Intoxication – if under the influence of drugs and/or alcohol a party is
unaware of the nature of the transaction they are entering into and the
other party is aware the contract will not be enforceable.
- Mental incapacity - If the person entering into the contract has some form
of mental capacity, then contract could be valid but if not and the other
party knew or should have known of lack of capacity then contract is not
valid.
- Corporations – if a company acts beyond its powers and outside its
costitutions then contract may not be valid.
Contract – an agreement between two or more people for either goods or
services that is legally binding.
They can either be written or oral, but a written one is much easier to
inforce
Oral contracts are sometimes known as Parol contracts and contracts in
writing are known as specialty contracts
Contract law is a specific area of law and there are lawyers that specialise
in it
Implied terms –both parties are bound even if they don’t agree to them
Unenforceable clauses - parties cannot include clauses which exclude
them from liability for death or personal injury
Essential elements of a contract
- Agreement
- Consideration (a promise to give, do/not do something in return for a
similar promise)
- An intention to create legal relations
- Compliance – does the contract need to be in writing or can it be made
orally?
- Capacity - Minors, drunken/ inebriated people, mentally disabled, or
Corporations may not have capacity to contract
Not a legal contract
Void contracts – not a contract has no legal effect
Voidable contracts – contracts binding on one party but can have it set
aside by other party. If not set aside the contract is valid
Unenforceable contracts - If one party refuses to carry out their side of the
contract courts will not enforce it. It only causes problems if terms of
contract are breached.
A contract for the sale of land which is not In writing is unenforceable.
Contractual capacity
- Minors, under 18 not legally bound but some exceptions such as contracts
for necessaries.
- Intoxication – if under the influence of drugs and/or alcohol a party is
unaware of the nature of the transaction they are entering into and the
other party is aware the contract will not be enforceable.
- Mental incapacity - If the person entering into the contract has some form
of mental capacity, then contract could be valid but if not and the other
party knew or should have known of lack of capacity then contract is not
valid.
- Corporations – if a company acts beyond its powers and outside its
costitutions then contract may not be valid.
