THE LAW OF CONTRACT
THE LAW OF CONTRACT IN GHANA
(These notes have mainly been culled from Mrs. Christine Dowuona Hammond’s seminal work on the Law of Contracts.)
INTRODUCTION
Contracts are made by people every day, whether the parties recognise it or not. Each time one spends money on anything – a bus ticket, an airline ticket, a pair of shoes, a meal in a restaurant, laundry services, books, or signs a lease, etc. one concludes a valid and legally binding contract. Contracts may be oral or written; may arise by parties’ conduct; may involve large or trivial sums of money and may be of short or long duration. The contents and subject matter of the contract also vary widely, creating different kinds of contracts including contracts of sale, hire purchase, insurance, employment, marriage, mortgage, leases etc.
The Law of Contract is simply the branch of the Law, which governs the effort to achieve and carry out voluntary agreement. The principles of the law of contract are concerned with determining whether an agreement or transaction is binding or legally enforceable and if so, what the consequences of a breach of it are.
Sources of Ghanaian Contract Law
Ghanaian contract law comprises the English law of contract, which comprises the common law principles of contract, doctrines of equity and English statutes of general application (i.e. English statutes in force before July 24, 1874) and all current legislation affecting contracts1. One critical piece of legislation which has significantly impacted Ghanaian contract law and effected major changes in the common law rules on consideration, guarantees, third party rights and frustration of contracts is the Contracts Act, 1960 (Act 25).
DEFINING THE LAW OF CONTRACT
A contract has been defined by Sir Frederick Pollock as "a promise or set of promises which the law will enforce". In other words a contract is an agreement (consisting of the exchange of promises) which is recognised by the Law as giving rise
(These notes have mainly been culled from Mrs. Christine Dowuona Hammond’s seminal work on the Law of Contracts.)
INTRODUCTION
Contracts are made by people every day, whether the parties recognise it or not. Each time one spends money on anything – a bus ticket, an airline ticket, a pair of shoes, a meal in a restaurant, laundry services, books, or signs a lease, etc. one concludes a valid and legally binding contract. Contracts may be oral or written; may arise by parties’ conduct; may involve large or trivial sums of money and may be of short or long duration. The contents and subject matter of the contract also vary widely, creating different kinds of contracts including contracts of sale, hire purchase, insurance, employment, marriage, mortgage, leases etc.
The Law of Contract is simply the branch of the Law, which governs the effort to achieve and carry out voluntary agreement. The principles of the law of contract are concerned with determining whether an agreement or transaction is binding or legally enforceable and if so, what the consequences of a breach of it are.
Sources of Ghanaian Contract Law
Ghanaian contract law comprises the English law of contract, which comprises the common law principles of contract, doctrines of equity and English statutes of general application (i.e. English statutes in force before July 24, 1874) and all current legislation affecting contracts1. One critical piece of legislation which has significantly impacted Ghanaian contract law and effected major changes in the common law rules on consideration, guarantees, third party rights and frustration of contracts is the Contracts Act, 1960 (Act 25).
DEFINING THE LAW OF CONTRACT
A contract has been defined by Sir Frederick Pollock as "a promise or set of promises which the law will enforce". In other words a contract is an agreement (consisting of the exchange of promises) which is recognised by the Law as giving rise