Contract Law Fundamentals

Study Notes

Contract law is a branch of law that deals with the enforcement of agreements between parties.
It is a vital part of commercial law, as it provides the framework for businesses and individuals to enter into binding agreements.

Offer: A proposal made by one party to another, which can be accepted or rejected.
Acceptance: The agreement to the terms of the offer, which forms a binding contract.
Consideration: Something of value given by one party to another in exchange for the promise or performance.
Intention to create legal relations: The parties must intend to create a legally binding agreement.
Capacity: The parties must have the legal capacity to enter into a contract.
Consent: The parties must give their genuine consent to the contract.

Express Contracts: Contracts in which the terms are explicitly stated, either orally or in writing.
Implied Contracts: Contracts in which the terms are implied by the actions or circumstances of the parties.
Bilateral Contracts: Contracts in which both parties exchange promises.
Unilateral Contracts: Contracts in which one party makes a promise in exchange for an act.

Invitation to Treat: An invitation to others to make an offer, which can be accepted or rejected.
Advertisements: Generally considered to be invitations to treat, rather than offers.
Auction Sales: The auctioneer's bid is considered an invitation to treat, and the highest bidder's acceptance forms a contract.

Conditions: Terms that are fundamental to the contract, and a breach of which may entitle the other party to terminate the contract.
Warranties: Terms that are not fundamental to the contract, and a breach of which may entitle the other party to damages.
Innominate Terms: Terms that are neither conditions nor warranties, and a breach of which may entitle the other party to damages or termination.

Duress: The use of threats or coercion to induce a party to enter into a contract.
Undue Influence: The use of unfair persuasion to induce a party to enter into a contract.
Misrepresentation: A false statement of fact that induces a party to enter into a contract.
Mistake: An error or misunderstanding that affects the validity of the contract.

Performance: The fulfillment of the contractual obligations by one or both parties.
Agreement: The parties may agree to terminate the contract or vary its terms.
Breach: A failure to perform the contractual obligations, which may entitle the other party to terminate the contract or claim damages.
Frustration: An event that makes it impossible for the contract to be performed, which may terminate the contract.

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