Please enable JavaScript.

Coggle requires JavaScript to display documents.

LAW OF CONTRACT - Coggle Diagram

- - - - Section 2(d) of the Contracts Act 1950 provides that "when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promise to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise"
    - - Executed consideration
      - Past consideration
      - Executory consideration
    - - an agreement without consideration is void and not valid
      - Exceptions
        
        Agreement made on account of natural love and affection
        
        agreement to compensate past voluntary act
        
        Agreement to compensate an act which promisor legally compellable to do
        
        Agreement to pay a statute-barred debt
    - - Need to be adequate
      - Need not come from promisee
      - Waiver of performance
  - - - Section 2(b) of the Contracts Act 1950 : 'When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted : a proposal, when accepted, becomes a promise'
    - - Must be absolute and unqualified
        
        requirement : acceptance must be in line with conditions of offer (mirror image rule)
        
        modification : amount to a counter-offer and does not make up acceptance
        
        Case 1 : Hyde vs Wrench
        Case 2 : Stevenson, Jacques & Co v McLean
      - Must be expressed in usual and reasonable manner
        
        if prescribed - the offeree must follow prescribed mode of acceptance
        
        if not prescribed : the offeree must do in a usual and reasonable manner depending on norm or circumstances practice
        
        Case : Eliason v Henshaw
      - Must be communicated to the offeror
        
        Exceptions
        
        Offeror not insist on acceptance to be communicated
        
        Offeror allows offeree to fulfill conditions of offer
        
        Reciprocal promises
        
        Postal rule
    - - Section 5 (1) provides that "A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but afterwards."
- - - - Ordinary Damages
      - Special Damages
      - Liquidated Damages
    - - Substantial Damages
      - Nominal Damages
      - Exemplary Damages