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TOPIC 2: LAW OF CONTRACT (Part 1) - Coggle Diagram
TOPIC 2: LAW OF CONTRACT (Part 1)
Contract
Damages/Remedies
Damages are meant to make up for the loss that the aggrieved party has suffered as a result of the violation of contract.
The End
Expiration - refers to a contract that expires according to its terms, either because it has a set expiration date or because the contract has a right to cancel.
Termination - (1) Breach-A breach of contract occurs when a party fails or refuses to fulfil what is required of him under the contract without reasonable cause. (2) Anticipatory Breach -An anticipatory breach occurs when a party either repudiates the contract or disables himself from completing it before it is due. (3) Termination for Breach -Because of the other party's defective or nonperformance, one party (the injured party) is relieved from his responsibility to perform
Vitation - instances in which the parties have achieved an agreement but the existence or non-existence of a fact is in dispute
Frustration -A contract may be discharged under the doctrine of frustration if, after its creation, an unanticipated event happens
Content
Express terms - Express terms are ones that the parties have set out in their agreement.
Implied terms - (1) Terms implied, in fact (2) Terms implied in law & by statute (3) Terms implied by custom or usage terms
Formation
Acceptance -An acceptance is a final and unqualified expression of assent to the terms of an offer
Consideration - Consideration is "something of value" given in exchange for a promise and is essential for the promise to be enforceable as a contract.
Offer - An offer is an expression of willingness to contract on specified terms
Contractual intention - Even if supported by consideration, an agreement that was established without the aim to generate legal intentions is not a contract.
Form - most contracts can be formed orally, and in rare cases, no oral or written communication is required at all. As a result, an informal exchange of promises can be as legally binding as a written contract.
Elements of Contract
Consideration - Both parties to the contract must expressly agree on consideration, or the terms of the contract must expressly imply it.
Intention to create legal relations -There must be mutual assent or a "meeting of the minds" of the parties on all proposed terms and key parts of the contract, whether oral or written.
Acceptance - the acceptance cannot be revoked, nor can it change the terms of the offer, alter it, or modify it.
Capacity of contract - Section 11 of the Contracts Act 1950, that the person who enters into the contract must be of full age and mental capacity
Proposal or offer - An offer can be oral or written as long as it is not required to be written by law
Free consent - Under Section 14, consent must be free and not caused by ; (a) coercion, Section 15. (b) undue influence, Section 16. (c) fraud, Section 17 (d) misrepresentation, Section 18 (e) mistake, Section 21,22,23
What is Contract?
A contract is essentially an agreement between two parties that binds both of them to execute certain actions.
Remedies for Breach of Contract
Definition of Remedy -to obtain justice in any situation involving legal rights
Extraordinary Remedy - employed by a judge to meet particular problems such as appointment of a referee
Provisional Remedy - Temporary solution to maintain the status quo until a final decision
Types of remedies for breach of contract ; (1) Money damages (2) Restitution (3) Rescission (4) Reformation (5) Specific Performance