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LAW OF CONTRACT - Coggle Diagram

- - - - when a court reforms or changes a contract to correct any inequities. instead of setting aside the entire contract, the terms of the contract may be rewritten to do justice.
    - - the breaching party has to perform their duties as specified by the contract and it is used when money damages are not adequate to compensate the plaintiff.
      - used in cases involving giving a piece of land of a valuable item to the plaintiff.
      - signed the contract selling the item but had the intent to defraud the other party, then the court can force them to sell the item, do long as the other party was willing to pay the contracted amount and was ready to do so.
    - - the contractual duties of both parties may be terminated by the court.
      - used in certain cases such as when parties enter into a contract because of mistake, fraud, undue influence or duress and the only way to do justice is to terminate the contract.
    - - used to restore the injured party to the position occupied before the contract, defendant supposed to give back any money or property received from plaintiff under the contract and restitution is not used to compensate the plaintiff for lost profits or other earnings.
      - typically used in cases where the contract is voided by the court because the defendant lacked the competence of capacity necessary to enter into a contract.
    - - monetary payments which a breaching party has to make for violating the terms of contract.
      - partial breach: the plaintiff can recover a sum which equals the amount necessary to hire someone else the complete that part of the contract.
      - the court may only award damages which are equal to the difference between the value of the contract as performed and the full value of the contract which was agreed by the parties.
      - types of money damages:
        
        Compensatory Damages: cover the loss of the non-breaching party.
        
        special damages: cover any loss incurred because of special circumstances or conditions which the breaching party knew about when the contract was made.
        
        General damages; cover the loss directly connected to the breach of contract and are the most common type.
        
        Punitive Damages: rarely awarded for breach of contract cases. awarded to punish the wrongdoer for egregious behaviour and to deter others from commiting similar acts. (requested, and up to the court).
      - not awarded if the non-breaching party could have taken reasonable efforts to mitigate.
- - - - express terms
      - implied terms
    - - expiration
      - termination
      - Vitiation
      - Frustration
    - - acceptance
      - offer
      - consideration
      - contractual intention
      - form
    - - Consideration
      - Intention to create legal relations
      - Acceptance
      - Capacity to contract
      - Proposal or Offer
      - Free consent
- - - - Time whenever mentioned shall in all respects be of the essence of the contract.
      - Upon execution of the agreement the first defendant paid the plaintiff a deposit of RM24,540.78. With regard to payment of the balance the second schedule to the agreement provides that:
      - The balance of the purchase price of Ringgit Malaysia TWO HUNDRED
      - Section 38(1) of the Act provides that the parties to a contract must either perform, or offer to perform, their respective promises, unless the performance is dispensed with or excused under the Act, or of any other law. Section 56 of the Act regulates the position when time is of the essence of a contract. It reads as follows:
        
        56.(1) When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract, or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of the essence of the contract.
        
        (2) if it was not the intention of the parties that time should be of the essence of the contract, the contract does not become voidable by the failure to do the thing at or before the specified time, but the promisee is entitled to compensation from the promisor for any loss occasioned to him by the failure.
        
        promisee cannot claim compensation for any loss occasioned by the non-performance of the promise at the time agreed unless at the time of the acceptance, notice was given to the promisor of his intention to do so.