Law of Contract: Understanding Contract Agreements

An agreement entered into by two or more parties with the intention of creating a legal obligation or legal obligations.

It signifies the serious intention to create legally enforceable obligations.

It is determined as a question of fact with reference to available evidence.

<p>Where one party leads another to believe that they do not seriously intend to be bound, the law will uphold the contract if there was a reasonable belief in the validity of the contract.</p> Signup and view all the answers

<p>An agreement is not necessarily a contract, as a contract requires the intention to create legally enforceable obligations.</p> Signup and view all the answers

<p>Social or domestic arrangements do not intend to create legally binding obligations, so they do not qualify as contracts.</p> Signup and view all the answers

<ol> <li>Juristic act</li> <li>Bilateral/Multilateral</li> <li>Undertaking</li> <li>Reciprocity</li> <li>Freedom of contract</li> <li>Consensual</li> </ol> Signup and view all the answers

<p>The contract must be lawful and not prohibited by law, such as statutes, common law, or the Constitution.</p> Signup and view all the answers

<p>The obligations undertaken in a contract must be capable of performance when the agreement is made.</p> Signup and view all the answers

<p>A contract must have definite or determinable content so that obligations can be ascertained and enforced.</p> Signup and view all the answers

<p>Reciprocity means that one party's performance is promised in exchange for the other party's performance.</p> Signup and view all the answers

<p>A contract is consensual when it is based on an agreement of some sort between the parties involved.</p> Signup and view all the answers

<p>Concurring wills</p> Signup and view all the answers

<p>He who alleges</p> Signup and view all the answers

<p>Contract fails if the reliance is unreasonable</p> Signup and view all the answers

<ol> <li>Freedom of contract 2. Sanctity of contract 3. Good faith 4. Privity of contract</li> </ol> Signup and view all the answers

<p>Pacta sunt servanda</p> Signup and view all the answers

<p>Contract stands if reliance is reasonable; contract fails if reliance is unreasonable</p> Signup and view all the answers

<p>Direct horizontal application attacks a contract on the basis of non-compliance with the Constitution without reference to common law, while indirect horizontal application exerts the influence of the Constitution on contract law in a dispute between private parties.</p> Signup and view all the answers

<p>The goal is to create legal certainty by ensuring that people fulfill their promises.</p> Signup and view all the answers

<p>Promote the spirit, purport, and objects of the Bill of Rights.</p> Signup and view all the answers

<p>Values like sanctity of contract, good faith, freedom of contract.</p> Signup and view all the answers

<p>Contracts are subject to constitutional control.</p> Signup and view all the answers

<p>Consensus</p> Signup and view all the answers

<p>It helps in understanding the competing nature of these cornerstones.</p> Signup and view all the answers

<p>SFCs are convenient, less costly, and the majority of transactions (estimated at 95%) are concluded using them.</p> Signup and view all the answers

<p>Actual subjective agreement involves a true meeting of minds, while apparent objective agreement is when one party is under the reasonable belief that an agreement has been reached.</p> Signup and view all the answers

<p>When party X is under the reasonable belief created by party Y that an agreement has been reached.</p> Signup and view all the answers

<p>Good faith is important for promoting fairness in contractual dealings and aligning with public policy.</p> Signup and view all the answers