Contract Law
Contract law governs the formation and enforcement of agreements between parties. It encompasses the rules and regulations that dictate how contracts are created, what makes them legally binding, and the remedies available if one party breaches the contract. This area of law is essential for ensuring the smooth functioning of business transactions and personal agreements.
5 Key excerpts on "Contract Law"
eBook - ePubBusiness Law
A Straightforward Guide
- (Author)
- 2014(Publication Date)
- Straightforward Publishing Digital(Publisher)
...Ch. 1 BUSINESS LAW-THE LAW OF CONTRACT Underpinning all contracts are four main principles: 1) A contract is an agreement between the parties to that contract-one person makes an offer and the other accepts that offer 2) Both parties have an intention to be legally bound by the agreement-this is usually known as an intention to create legal relations 3) Parties to the agreement need to be absolutely clear as to the terms of the agreement – this is the main area of contention with contracts, as we will see laterc4) There must be consideration provided by each of the parties to the contract – this means that one person promises to give or deliver and the other promises to pay. The offer and the payment – either monetary or in kind - is the consideration. When making a contract, or entering into a contract all parties to the contract must have the legal capacity to enter into a contract. Very importantly, a contract, in most cases, does not have to be in writing – a piece of paper is not necessary, the agreement and evidence of that agreement forms the basis of contract. There are a few important exceptions, including contracts relating to interests in land (Law of property (Miscellaneous Provisions) Act 1989, s 2(1)) and consumer credit (Consumer Credit Act 1974). Other factors affecting formation include: • Form-the way the contract is created (e.g. the sale of land can only be made in the form of a deed) Form is an issue with specialty contracts but not with simple contracts • Privity of contract and the rights of third parties-generally a contract is only enforceable by or against a party to it, subject to exceptions and certain third party rights are now protected in the Contracts (Rights of Third Parties) Act 1999. The nature of contracts – unilateral and bilateral contracts The majority of contracts entered into are known as Bilateral contracts. This quite simply means that each party to a contract agrees to take on an obligation...
eBook - ePub- Matthew Cousins(Author)
- 2019(Publication Date)
- Routledge(Publisher)
...6 General principles of Contract Law Statutes Consumer Rights Act 2015 Local Democracy, Economic Development and Construction Act 2009 Companies Act 2006 Consumer Credit Act 2006 Contracts (Rights of Third Parties) Act 1999 Housing Grants, Construction and Regeneration Act 1996 Limitation Act 1980 Unfair Contract Terms Act 1977 Misrepresentation Act 1967 WHAT IS Contract Law? “The law of contract provides the principal framework for the legal analysis of rights and obligations arising out of agreements for the carrying of construction or engineering work.” 1 1 Bailey, J., 2011, Construction Law, Vol 1, Informa Law, p 4. Contract Law is the law that regulates contracts. In general terms, Contract Law can be described as a body of rules of agreement based on the mutual exchange of obligations. For there to be formation of a contract, different parties must reach agreement, the agreement must be supported by consideration and there must be an intention to create legal relations. A contract can be created orally, by exchange of letters, fax or email, or be the outcome of a period of negotiation, exchange of promises or conduct of the parties. The parties to a contract are free to agree the obligations to which they wish to be bound and, once a contract is concluded, it binds the parties in law. It is often preferable to have a formal written contract signed by both parties. WHAT IS A CONTRACT? A contract is an agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties. 2 2 Treitel, G., 2003, The Law of Contract, 11th edn, Sweet and Maxwell, p 1. A contract is a legally binding agreement that creates rights and obligations between two or more parties that can be enforced by law. Contracts are a body of rules of agreement based on the mutual exchange of obligations...
eBook - ePub- Kenny Chin(Author)
- 2014(Publication Date)
- Routledge-Cavendish(Publisher)
...4 Contract Law You should be familiar with the following areas: • the essentials of contract and the effects of the absence of them • rules relating to offer, acceptance and invitation to treat • use of postal and other means of communication on offer and acceptance • rules of consideration • distinction of legal intention to contract on domestic and social agreements • capacity of minors to make contracts and the effect of the Minors’ Contracts Act 1987 • discharge of contract by frustration and the effects of the Law Reform (Frustrated Contracts) Act 1943 • breach of contract and the remedies • consumer contract and related provisions under various statutes • duties of employer and employee, sex and racial discrimination in employment Introduction A contract is an agreement between two or more parties, who promise to give and receive something from each other and who intend that the agreement be legally binding. Except for some special contracts, for example, sale of a house, there is no general legal requirement that a contract has to be in writing. Verbal contracts are as enforceable as written contracts. The problem with verbal contracts is not on validity but on evidence. When nothing is recorded in black and white it is difficult to prove who has said what. Contract Law is categorised in the law of obligation. A contract creates a legal obligation between the contracting parties. When one party has not fulfilled, or is not going to fulfil the obligation, he can be sued for breach of contract. The court will help the innocent party by either ordering damages suffered to be compensated, compelling the party in breach to perform the contract (specific performance order) or prohibiting the wrongdoer to act in a way which would cause further breaches (injunction order). It is therefore important to know how and when a binding agreement has been created...
eBook - ePubThe Project Manager's Guide to Purchasing
Contracting for Goods and Services
- Garth Ward(Author)
- 2016(Publication Date)
- Routledge(Publisher)
...6 Contract Law This chapter is primarily about the legal aspects of contracts between individuals, or companies as individuals, in the context of English Civil Law. The English legal system, in order to be consistent, is based on the principle that a decision made by a senior court is binding on a more junior court in subsequent cases, where the facts are similar. This is known as judicial precedent, or more simply, as precedent. The law developed in this manner is often termed Common Law. Other sources of law are: legislation, regulations and directives of the European Union. This chapter will cover the basic issues that a project manager or buyer must know if they are buying goods and services. Ignorantia juris haud excusant – ignorance of the law is no excuse. Nevertheless, it is not intended to be a comprehensive rendering of Contract Law. The intention is to provide sufficient understanding of the subject to enable the project manager and buyer to carry out their normal business and talk to their company lawyer in a common language. Smart project managers should not try to be clever with contracts. They should be clever at making commercial and risk decisions. Much of what follows should convey a project manager’s perspective, but listening to my friend, colleague and legal guru David Wright, has also heavily influenced it. THE MEANING OF WORDS It is very common for people to feel that there is a barrier between their own particular area of expertise and the, so-called, mysteries of the law. This is, perhaps, because the purer the technologies the less comfortable people are at manipulating words. This reluctance to tackle the law can disappear once one has taken on board that it is simply about the meaning of words. Lawyers are good at understanding, using and manipulating words. They interpret what the words of the contract mean in the circumstances that the parties find themselves...
eBook - ePub- Chris Monaghan(Author)
- 2015(Publication Date)
- Routledge(Publisher)
...Chapter 3 Contract Law LEARNING OBJECTIVES After reading this chapter, you should be able to: • appreciate the requirements that are needed in order to have a legally enforceable contract; • understand the consequences for the contracting parties where there is misrepresentation, mistake, duress, illegality and undue influence; • comprehend how a contract can be discharged by performance, acceptance, breach and frustration; • demonstrate an awareness of the remedies that are available where a contract has been breached. Every business transaction will involve the use of a contract. Without a contract, a business agreement will not be legally enforceable. This chapter is intended as an introduction to the law of contract. It is essential that you understand the key concepts covered in this chapter. To demonstrate how the law applies in practice we will consider how the law relates to transactions entered into by Snow Ltd. Snow Ltd is based in York and specialises in building loft extensions. Imagine that Snow Ltd wishes to contract with Murphy Ltd, in which case the contract could be written or verbal. Both written and verbal contracts are equally valid. However, in an event of a dispute, it will be easier to prove the terms of the contract if the contract is written...
