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Principle and Theories in Law of Contract - Coggle Diagram
Principle and Theories in
Law of Contract
Formation
Consideration
-Something of value & required
to make the promise enforceable
as contract.
-Detriment to the promisee and/or
some benefit to the promisor
-Must be sufficient (need not
to be adequate), not from the
past & move from the promisee
Contractual Intention
Not binding as contract if made
without intention. Parties must
intend to the agreement to
be legally binded
Offer
Willingness to contract
on specified term with
intention and accepted by
other party
Form
Formed:
1) Informally
2) Orally
3) Non oral or written
*there's statutory exception
to this rule
Acceptance
-Final & unqualified expressions.
-Must be accepted in accordance
with its precise terms to
form agreement.
-Exactly match the offer &
ALL terms must be accepted
Damages/Remedies
Intended to compensate the injured party for the loss or suffered because of the breach of contract
The End of A Contract
Frustration
Unforeseen event occurs that
makes performance of
the contract impossible,
illegal or essentially different from
what was contemplated
Expiration
Has fixed expiry date
Vitiation
Parties reached an agreement
but question arises (about existence/non of
some facts) which destroyed the basis of
agreement. Thus, it is discharged or vitiated
Termination
Breach
-W/out lawful excuse,
fails/refuse to perform as
mentioned in contract, performs
defectively and incapacitates
from performing
Anticipatory breach
-Before performance due,
a party either repudiates
the contract or disables
himself from performing
Termination for
breach
-One party is released from
his obligation to perform as other
party is defective or non
performance
Content
Express terms
The ones that is mentioned
in the agreement
Implied terms
-Not expressly stated.
-Terms implied in fact,
law & statute, custom / usage