Law of Contract
LAW OF CONTRACT NOTES
INTRODUCTION.
A contract is an agreement between two parties which is enforceable by law.An agreement is made when a person signifies his willingness to do or to abstain from doing anything with a view of obtaining the assent of the other party. Such act or abstinence is said to make a proposal.The person making the proposal is called the offeror and the person accepting the proposal is called the offeree
TYPES OF CONTRACTS:
Contracts may be classified into:
-Written (Specialty Contracts)
These are contracts which the law insists must be written. They must be embodied in a formal document e.g.
Hire Purchase Act specifies that a hire purchase agreement must be written.
Marine Insurance Act, a contract of Marine Insurance must be written.
Contracts of sale of land are equally required to be written.
- Contracts requiring written evidence
These are contacts which must be evidenced by some note or memorandum. Such note or memorandum must:
Describe the parties sufficiently to identify them, describe the subject matter, contain the signatures of the parties. Such contracts include:
Contract of guarantee, Contract of insurance etc.
- Simple contracts.
These are contracts whose formation is not subject to any legal formalities. The contract may be oral, written or implied from the conduct of the parties e.g. Contract of sale of goods
Partnership agreements etc.
ELEMENTS OF A CONTRACT.
All agreements are contract when made out of free consent of parties ,competent to contract, with a lawful object and which are not thereby declared void.
The following are elements of a contract.
I. Offer
II. Acceptance
III. Intention to create a legal relationship.
V. Capacity to contract.
VI. Free consent.
VII. Lawful object.
VIII. Legal formalities.
IX. Possibility of performance.
X. Not expressly declared void.
OFFER
A contract comes into existence when a definite offer has been unconditionally accepted.
Mode: The offer can be
INTRODUCTION.
A contract is an agreement between two parties which is enforceable by law.An agreement is made when a person signifies his willingness to do or to abstain from doing anything with a view of obtaining the assent of the other party. Such act or abstinence is said to make a proposal.The person making the proposal is called the offeror and the person accepting the proposal is called the offeree
TYPES OF CONTRACTS:
Contracts may be classified into:
-Written (Specialty Contracts)
These are contracts which the law insists must be written. They must be embodied in a formal document e.g.
Hire Purchase Act specifies that a hire purchase agreement must be written.
Marine Insurance Act, a contract of Marine Insurance must be written.
Contracts of sale of land are equally required to be written.
- Contracts requiring written evidence
These are contacts which must be evidenced by some note or memorandum. Such note or memorandum must:
Describe the parties sufficiently to identify them, describe the subject matter, contain the signatures of the parties. Such contracts include:
Contract of guarantee, Contract of insurance etc.
- Simple contracts.
These are contracts whose formation is not subject to any legal formalities. The contract may be oral, written or implied from the conduct of the parties e.g. Contract of sale of goods
Partnership agreements etc.
ELEMENTS OF A CONTRACT.
All agreements are contract when made out of free consent of parties ,competent to contract, with a lawful object and which are not thereby declared void.
The following are elements of a contract.
I. Offer
II. Acceptance
III. Intention to create a legal relationship.
V. Capacity to contract.
VI. Free consent.
VII. Lawful object.
VIII. Legal formalities.
IX. Possibility of performance.
X. Not expressly declared void.
OFFER
A contract comes into existence when a definite offer has been unconditionally accepted.
Mode: The offer can be