Contract Law in Sri Lanka

Topics: Contract, Contract law, Gentlemen's agreement Pages: 12 (4108 words) Published: February 25, 2014
Introduction To Contract Law:
A contract is 'a promise or set of promises which the law will enforce' (Pollock Principles of Contract (13th Edn) 1). The expression 'contract' may, however, be used to describe any or all of the following:  1. that series of promises or acts themselves constituting the contract; 2. the document or documents constituting or evidencing that series of promises or acts, or their performance; 3. the legal relations resulting from that series.

A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock:

"A promise or set of promises which the law will enforce".

The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default.

A valid contract requires: 
1. an agreement;
2. an intention to create legal relations; and
3. consideration (unless the Contract is made by deed).
Whilst each of these three requirements receives separate treatment, they must in reality be looked at together. Contract is an official agreement. It could be written or even be in oral. Contracts can be written by using formal or informal terms, or entirely verbal or spoken. It is a promise made between two or more parties that which allow the courts to make judgment. A contract has six important elements so that it will be valid which is offer, acceptance, consideration, intention to create legal relation, certainty and capacity. If the main elements are not in contract, it would be an invalid contract.

1.1.1 Offer
The first element in a valid contract would be offer. An offer or a promise or an agreement needs to be in contract because if there is no offer than there will be no contract. In the Contracts Act, 1950, the first elements in a contract would be offer. It is one of the elements to make sure that the contract is legally valid or acceptable. In a contract, it is very important that a party would make an offer. There is a difference of offer between an advertisement and an option. To make an offer, there should be at least two parties or even more so that it would be legally capable of entering into a contract. If the offer is accepted than it would constitutes to a legally valid contract. When an offer is being made, the other party or person would know what is being offer and what the person or party who made the offer expect to have in return. It is the same when anybody goes on a holiday, stays at a hotel and so on. For example, a family has made an arrangement with a tour agency to have a holiday at Hong Kong for a few days. The tour agency would make a contract by making forms to the family which would have to be filling up. The family member who fills up the form would have to be clear with the rules and regulations given by the tour agency company. Once it is fills up, the contract has been made between the family and the tour agency. 1.1.2 Acceptance

After having an offer in the contract, there should be acceptance. For a contract to be made there should be acceptance from the other party or person. When the other party is clear with the offer, there would make an acceptance once they are clear with the rules and regulations being offer in the contract. There will be no contract if the parties are still negotiating or discussing and have not made accept the offer. The person or party can accept the offer being made in writing or orally which is made verbally or being spoken out. For example, a tourist writes to hotel K requesting information about the cost and availability of accommodation for the week commencing on the 15th April 2011. The staff at hotel K answers the inquiry states that the accommodation available for that week would cost RM 600 and if the tourist responds with the deposit of RM 100 within a week, then the room will be allocated to him. If the tourist...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Contract Law Problem
  • Law of Contract Essay
  • Contract law assignment Essay
  • business law :Breach of Contract Essay
  • Contract Law Essay
  • The Law of Contract
  • Essay on law of contract

Become a StudyMode Member

Sign Up - It's Free