Australian Business Law Summary
Topic 3: Contract Law
*What is a contract? a legally enforceable agreement; that is, an agreement enforceable in a court
*Types of contracts
Number of parties: * Unilateral – one party (eg reward case) * Bilateral – two parties, both with mutual obligations * Multilateral – more than two parties, all with obligat0ions
Form:
* Simple Contracts: written; oral; part-written & part-oral * Need all elements of a contract , including consideration * If all elements present, enforceable unless written contract required and not present * Formal Contracts (normally ‘Deeds’): satisfy formality requirements (eg written, signed, sealed & delivered) * No need for ‘consideration’ (that is, mutual promises)
Deeds required for: unilateral contracts & where statute requires
*When is written contract required?
General rule: not normally, simple contract will be sufficient.
Exceptions:
LEGISLATIVE EXCEPTIONS:
You CANNOT enforce (unless evidenced in writing & signed by the person you are enforcing against): * Contracts for ‘disposition’ (= sale / transfer) of land (Instruments Act (Vic) s 126) * Assignment of copyright (s 196(3) Copyright Act (Cth)) * Transfer of Co securities (eg shares) (Corporations Act (Cth), s 1071B(2)) * Credit contracts regulated by the Consumer Credit Code (Uniform Consumer Credit Code, s 12(1)) * Cheques, bills of exchange, marine & life insurance policies (& mortgages & assignments of them)
COMMON LAW EXCEPTIONS: * Gifts & trusts (because they are unilateral contracts)
Topic 3b: Elements of a simple contract 1. intention to create legal relationship - presumed in commercial but not family/social relationships; rebuttable by evidence 2. Mutual agreement - often proven by identifying separate offer & acceptance; can also be proven by circumstances / conduct 3. Consideration - promises need to be mutual, from each party to the
*What is a contract? a legally enforceable agreement; that is, an agreement enforceable in a court
*Types of contracts
Number of parties: * Unilateral – one party (eg reward case) * Bilateral – two parties, both with mutual obligations * Multilateral – more than two parties, all with obligat0ions
Form:
* Simple Contracts: written; oral; part-written & part-oral * Need all elements of a contract , including consideration * If all elements present, enforceable unless written contract required and not present * Formal Contracts (normally ‘Deeds’): satisfy formality requirements (eg written, signed, sealed & delivered) * No need for ‘consideration’ (that is, mutual promises)
Deeds required for: unilateral contracts & where statute requires
*When is written contract required?
General rule: not normally, simple contract will be sufficient.
Exceptions:
LEGISLATIVE EXCEPTIONS:
You CANNOT enforce (unless evidenced in writing & signed by the person you are enforcing against): * Contracts for ‘disposition’ (= sale / transfer) of land (Instruments Act (Vic) s 126) * Assignment of copyright (s 196(3) Copyright Act (Cth)) * Transfer of Co securities (eg shares) (Corporations Act (Cth), s 1071B(2)) * Credit contracts regulated by the Consumer Credit Code (Uniform Consumer Credit Code, s 12(1)) * Cheques, bills of exchange, marine & life insurance policies (& mortgages & assignments of them)
COMMON LAW EXCEPTIONS: * Gifts & trusts (because they are unilateral contracts)
Topic 3b: Elements of a simple contract 1. intention to create legal relationship - presumed in commercial but not family/social relationships; rebuttable by evidence 2. Mutual agreement - often proven by identifying separate offer & acceptance; can also be proven by circumstances / conduct 3. Consideration - promises need to be mutual, from each party to the