A contract is an agreement which will be enforced by law

Topics: Contract, Common law / Pages: 1 (286 words) / Published: Apr 23rd, 2015
A contract is an agreement which will be enforced by law. The general law governing contracts in Sri lanka is the Roman Dutch law which is the country’s common law. Apart from RDL, certain areas of contracts are governed by statute law and also by English law.
For a contract to come into existence the following conditions must be satisfied.
1. There must be an agreement between two or more persons.
2. The parties must intend that their agreement will result in a legal relation.
3. The contract must comply with any required statutory formalities.
4. The agreement must be supported by Consideration as per the English law. However in RDl does not require consideration but justa causa.
5. Parties must have legal capacity.
6. The agreement must be genuine.
7. The agreement must be for apurpose or object which is not illegal.
A legal contract may be come to an end by a discharge of a contract. In contract law the term discharge means the process whereby a valid and enforceable contract is brought to an end thereby releasing the parties to it from all further rights and obligations.
The following are the main ways in which a contract is discharged.
(i) By Performance
(ii) By Agreement between the Parties
(iii) By Frustration
(iv) By a Breach of Contract
(v) By Operation of law

Breach of Contract
A breach of contract occurs whenever one party to the contract fails to perform his obligations imposed by the contract or intimates to the other party that he will not be performing his obligations. There can be 2 categories of breach.
Firstly,an actual breach. Here there is a failure to perform when the date for performance comes.

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