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Business law week 3: Contract law - Coggle Diagram
Business law week 3: Contract law
Domestic and social agreements
Are presumed to not be legally binding
However will be assessed if they changed their position in reliance to the agreement, or if a lot is at stake
Will be legally enforceable if made after marriage has broken down
Commercial agreements
Are presumed to be legally enforceable
business dealings
If promissory than courts can enforce it
Express exclusion of intention
Courts cannot enforce it if agreement states that there is no intent to be legally binding in the agreement
Letters of comfort
It is a form of security however it is not statements of commercial intent and not enforceable
Government policies
If someone promises something if people vote for them into the position and then proceed to not do the promise that is not enforceable however is just bad on the reputation of the business
However if involved in an commercial agreement than is enforceable by the courts
Consideration
Must be sufficient but not adequate
Must not be vague or illusory
May be executed or executory but not be in the past
Performing an existing public or private contractual obligation is not a good consideration
Practical benefit test can be an exception to these conditions
Contracts under seal/ deeds
Are a formal contract that is signed , sealed and delivered
Do not have to have a consideration to be legally enforceable but can have it
Promissory or equitable estoppel
Can soften the harsh rules of consideration however in many circumstances
Formalities
Written in writing , must be evident especially contracts with dealing with land or guarantee
Memorandum is required
Effect of non-compliance : the doctrine part of performance