Chapter 7 - Contract law 1. At the end of this chapter you should understand: how to define contracts according to validity, performance and formation; how contracts can be classified; how to distinguish formal contracts from simple contracts;. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! CONTRACT LAW 1 CHAPTER 7 Learning objectives At the end of this chapter you should understand: how to define contracts according to validity, performance and formation how contracts can be classified how to distinguish formal contracts from simple contracts the six essential elements required to make a valid contract—FROLIC what is meant by an intention to create a legal relationship and how this is determined by the law the distinction between an offer and an invitation to treat Learning objectives (cont.) rules with respect to offer and acceptance including the postal acceptance rule the meaning of ‘consideration’ and the consequence for a contract lacking consideration the rules regarding consideration how a contract lacking consideration may be enforceable if placed in a particular form the requirements of contracts required to be in writing and those required to be evidenced in writing. Introduction An understanding of the law of contract is of fundamental importance in the context of business practice. Valid contract An agreement made between two or more parties, giving rise to legal rights and obligations that the law will enforce. Valid contract (cont.) Intention to create Legality legal relations of object Terms: express/implied Offer Form Acceptance Conditions Warranties Consideration Exclusionary clauses Reality of Capacity of consent parties Classifications of contracts Classifications Validity Performance Formation Validity Valid Void Voidable Unenforceable Illegal All essential elements present, therefore law will enforce on behalf of either party No legal effect Entitled to be rescinded by innocent party Essential elements present but technicality prevented from being enforced Purpose or object of contract is illegal Validity Performance Executed Executory One party to contract has completed its part of the contract Both parties have obligations to perform . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! CONTRACT LAW 1 CHAPTER 7 Learning objectives At the end of this chapter you should understand: how to define contracts according to validity, performance and formation how contracts can be classified how to distinguish formal contracts from simple contracts the six essential elements required to make a valid contract—FROLIC what is meant by an intention to create a legal relationship and how this is determined by the law the distinction between an offer and an invitation to treat Learning objectives (cont.) rules with respect to offer and acceptance including the postal acceptance rule the meaning of ‘consideration’ and the consequence for a contract lacking consideration the rules regarding consideration how a contract lacking consideration may be enforceable if placed in a particular form the requirements of contracts required to be in writing and those required to be evidenced in writing. .
