Contract Law PDF

Law: Law can be defined as a science that regulates the relations between individuals and societies, essentially managing human behavior with legal effects o Not every rule qualifies as a law; three main elements must be present: Law must focus on actions rather than inte...

Law: Law can be defined as a science that regulates the relations between individuals and societies, essentially managing human behavior with legal effects o Not every rule qualifies as a law; three main elements must be present: Law must focus on actions rather than intentions. Law should be general, applying broadly to all, not restricted to specific individuals. Violations of law necessitate penalties, distinguishing legal rules from mere moral or ethical guidelines. Types of law 1. Private law: Regulates the behavior between two ordinary people Ex: A car accident between two ordinary people in the street · Civil Law: which deals with private affairs like marriage and property ownership · Commercial law: which governs trade, sales, and business conduct. 2. Public law: Regulates the behavior between a person and the government Ex: Someone files a case against a public school International Law: which regulates relations between countries and international organizations. Administrative Law: which deals with interactions between individuals and public institutions. Constitutional Law: which outlines the framework of the state, covering its official language, economic system, and authorities. Contract o A contract is an agreement between two or more parties for the purpose of obtaining a certain consideration (The situation created after implementing all the terms of the contract then advantages and gifts are completely exchanged between the parties) EX: selling goods/rental equipment/insurance/employment  Elements of a contract? 1. Consent 2. Object 3. Cause 1. Consent: Ensures that parties are aware of their rights and obligations within the contract and are agreed to them. o Both parties must willingly consent to a contract; if there are mistakes or if one party deceives or pressures the other, the consent is not valid. o It's the matching and related intentions of the two parties o Requires a complete, clear, and direct will of both parties to create or participate in building agreement 2. Object of the contract: Is the subject manner or the thing that the contract is about o Everything which isn't outside the commerce of men "including future things" may be the object of the contract (ex: car/building) o Contracts without object are "illegal" o Object disapprove any contracts that are opposite to law, morals, good customs, and public order or public policy 3. Cause of contract: Is the objective and legal reason for forming the contract o Contracts without cause or with unlawful cause produce are ineffective o Contracts are invalid if the cause is against the law, morals, good customs, public order, or public policy. Manners of making a contract 1. Written: A legally binding contract outlining each party's responsibilities. It minimizes conflict. 2. Oral Contracts: Are enforceable under specific circumstances but can be problematic if there are disagreements about the agreement. 3. Non-verbal: An implied contract is still legally binding based on the involved parties' actions or circumstances 4. Electronic contract: Online agreements that create mutual obligations and are enforceable under legal rules  The Intention to Create Legal Relations "expressed or implied intentions" o This is the moral essence of the contract. o Must be expressed as a written term, but if it’s implied intention, it’ll be presumed. o Presuming the intention is done by the judge during evaluating the legal claim introduced by the plaintiff asking the court to enforce the defendant to implement his contractual obligations o Presumed intention in commercial contracts is Rebuttable Intention (can be denied or proved wrong) to avoid legal obligations under the contract Existence of the intention o Eligibility: The ability to perform legal actions, incur consequences (like fines), and engage in legal relationships. This includes having sound mind "not suffering any mental disorder" and being of legal age (at least 21). o Legality: The contract's subject matter must be legal and not against criminal law. (i.e. Selling drugs) o Privacy: A contract's intention limits the benefits and obligations to the parties involved. A contract never extends to someone who isn't a party to the contract, even if they benefit. Formation of a contract o A contract is an agreement that combines the intentions of the involved parties. o It starts with an offer from one party (offeror) to another (offeree). o The offer must be clear, complete, and final. o The offeree accepts the offer. The Offer o The offer is a clear expression of willingness to enter into a contract with specified terms. o Offers must be clear (all details outlined), complete (details of implementation specified), and final (negotiation parameters defined). Termination of the Offer o By Act of Parties: Rejection: The offeree rejects the offer.  Counter-Offer: The offeree makes a different offer. Revocation: The offeror withdraws the offer before acceptance. o By Operation of Law: Lapse of Time: The offer expires. Death/Incompetency: Of the offeror or offeree, or if a condition isn't met. Acceptance o Acceptance is willingly agreeing to the terms of an offer. o Acceptance can be described as an expression of willingness to legally obligate oneself on the prior articulated terms of the offeror. The Place of the Contract o If both parties are in the same country, that country is the location of the contract. o Otherwise, the place of the contract is where the acceptance is received. o Classification of Terms o Expressed Terms: Written agreements between parties. (Example: Delivery terms) o Implied Terms: They are unwritten terms , assumed to be agreed on , applied by the court (Example: Unwritten terms in a rental agreement) Conditions and Warranties o Conditions: Fundamental terms of a contract, often pertaining to the core elements. (Example: Delivery) o Legal effect: Breaching the conditions arises the right for the other party to Terminate the contract and claim damages o Warranties: Less important parts of a contract, relating to secondary matters. (Example: Maintenance) o Legal effect: Breaching the warranty arises the right for the other party to Claim damages only without requesting termination of the contract  Rights and Obligations o Every contract outlines rights and obligations for all involved parties. o Example: A buyer's rights and obligations in a car sale contract. (Example: Buyer's right to receive car, buyer's obligation to pay) Validity of a Contract o Contracts can have defects, which can lead to legal consequences. o Relevant defects include (Mistake, Misrepresentation, and Violence): Mistake: Incorrect belief resulting from a party's fault (without outside intervention) Misrepresentation: A false statement about a fact or status in an effort to trick the other party into a contractual relationship Violence: Physical "direct" or moral "indirect" pressure, coercion, to make a contract. Example: X refused Y’s offer and after reconsidering it, he came back to accept it but Y refused. State the legal base of Y’s reaction and explain it briefly. ▪ Legal Effect: Termination of the Original Offer: The original offer from Y was terminated when X rejected it. Therefore, X cannot later accept the offer as it no longer exists. ▪ Legal Description: No Binding Contract: Since the original offer was terminated by X’s rejection, there is no binding contract between X and Y. Y is not obligated to accept X’s subsequent attempt to accept the offer.