Contract Law Notes
CONTRACT LAW NOTES
It is a legal enforceable agreement entered into by two or more different persons with legal capacity. The parties should have serious intention to create legally binding obligations. Their agreement needs to be within parities’ contractual capacity. Furthermore, parties should communicate such intention without vagueness each to the other and being of the same mind to the subject matter.
Essentials of a contract
a) it should be lawful
b) possible of performance
c) within contractual capacity
d) with the serious intention to contract
e) union of minds of parties – consensus ad idem
f) it should not be vague
g) intention of both parties should be communicated
A contract does not necessarily have to be in writing unless there is a specific statutory requirement that it be in writing.
A verbal contract is as equally valid as a written one, provided that the party alleging the contract can prove agreement on certain terms.
Writing is only important for evidence purposes although its not a requirement.
The presence of an agreement is determined by there being an offer and an acceptance. This is only a general rule and does not follow that every contract has to be constituted by a clear offer and acceptance.
OFFER AND ACCEPTANCE
Offer
Definition
A statement by a person, called the offeror, indicating his willingness to contract which statement is made in the awareness that it shall become binding an acceptance by the other person called the offeree.
Case law
Green Acres Farm (Pvt) Ltd v Haddon Motors (Pvt) 1983(1) ZLR 17 (SC)
In this case the defendant sent a truck to the plaintiff with a note requesting the plaintiff to check over the truck. The plaintiff did the checks over the truck and proceeded to effect repairs. Upon presentation of the invoice the Defendant refused to pay arguing that they had not requested the plaintiff to effect any repairs. The plaintiff took the matter to the courts. The Court held that
It is a legal enforceable agreement entered into by two or more different persons with legal capacity. The parties should have serious intention to create legally binding obligations. Their agreement needs to be within parities’ contractual capacity. Furthermore, parties should communicate such intention without vagueness each to the other and being of the same mind to the subject matter.
Essentials of a contract
a) it should be lawful
b) possible of performance
c) within contractual capacity
d) with the serious intention to contract
e) union of minds of parties – consensus ad idem
f) it should not be vague
g) intention of both parties should be communicated
A contract does not necessarily have to be in writing unless there is a specific statutory requirement that it be in writing.
A verbal contract is as equally valid as a written one, provided that the party alleging the contract can prove agreement on certain terms.
Writing is only important for evidence purposes although its not a requirement.
The presence of an agreement is determined by there being an offer and an acceptance. This is only a general rule and does not follow that every contract has to be constituted by a clear offer and acceptance.
OFFER AND ACCEPTANCE
Offer
Definition
A statement by a person, called the offeror, indicating his willingness to contract which statement is made in the awareness that it shall become binding an acceptance by the other person called the offeree.
Case law
Green Acres Farm (Pvt) Ltd v Haddon Motors (Pvt) 1983(1) ZLR 17 (SC)
In this case the defendant sent a truck to the plaintiff with a note requesting the plaintiff to check over the truck. The plaintiff did the checks over the truck and proceeded to effect repairs. Upon presentation of the invoice the Defendant refused to pay arguing that they had not requested the plaintiff to effect any repairs. The plaintiff took the matter to the courts. The Court held that