Contract Law Essentials

Study Notes

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a specific transaction or arrangement.
The purpose of a contract is to establish the rights and obligations of each party involved, ensuring a clear understanding of the agreement and minimizing potential disputes.

Offer and Acceptance: One party makes an offer, and the other party accepts it.
Consideration: Something of value is exchanged between the parties, such as goods, services, or money.
Intention to Create Legal Relations: The parties intend to create a legally binding agreement.
Capacity: The parties have the legal capacity to enter into a contract.
Genuine Consent: The parties give their genuine consent to the agreement.

Bilateral Contract: A contract where one party makes a promise in exchange for a promise from the other party.
Unilateral Contract: A contract where one party makes a promise in exchange for an act from the other party.
Express Contract: A contract where the terms are explicitly stated.
Implied Contract: A contract where the terms are implied by the actions or circumstances of the parties.
Oral Contract: A contract where the terms are agreed upon verbally.
Written Contract: A contract where the terms are agreed upon in writing.

Negotiation: The parties negotiate the terms of the contract.
Offer and Acceptance: The parties reach an agreement on the terms.
Consideration: The parties exchange something of value.
Signing: The parties sign the contract, indicating their acceptance of the terms.

Performance: The parties fulfill their obligations as outlined in the contract.
Breach: One party fails to fulfill their obligations, resulting in potential legal consequences.
Remedies: The non-breaching party may seek legal remedies, such as damages or injunctions, to enforce their rights.

Negotiation: The parties attempt to resolve the dispute through negotiation.
Mediation: A neutral third party facilitates a resolution.
Arbitration: A binding decision is made by a neutral third party.
** Litigation**: The dispute is resolved through court proceedings.

A contract is a legally binding agreement that outlines the terms and conditions of a specific transaction or arrangement.
The purpose of a contract is to establish the rights and obligations of each party involved, ensuring a clear understanding of the agreement and minimizing potential disputes.

A contract requires an offer and acceptance, where one party makes an offer and the other party accepts it.
Consideration is necessary, where something of value is exchanged between the parties, such as goods, services, or money.
The parties must intend to create a legally binding agreement.
The parties must have the legal capacity to enter into a contract.
The parties must give their genuine consent to the agreement.

Bilateral contracts involve promises exchanged between parties.
Unilateral contracts involve a promise in exchange for an act from the other party.
Express contracts have explicitly stated terms.
Implied contracts have terms implied by the actions or circumstances of the parties.
Oral contracts are agreements made verbally.
Written contracts have terms agreed upon in writing.

Contracts are formed through negotiation, where parties negotiate the terms of the contract.
An offer and acceptance are necessary, where parties reach an agreement on the terms.
Consideration is exchanged, where parties exchange something of value.
Signing the contract indicates acceptance of the terms.

Performance involves fulfilling obligations as outlined in the contract.
Breach occurs when one party fails to fulfill their obligations, resulting in potential legal consequences.
Remedies, such as damages or injunctions, may be sought by the non-breaching party to enforce their rights.

Negotiation involves attempting to resolve the dispute through direct discussion.
Mediation involves a neutral third party facilitating a resolution.
Arbitration involves a binding decision made by a neutral third party.
Litigation involves resolving the dispute through court proceedings.