The Nature of Contracts: Formation, Terms, Remedies for Breach

Lecture Notes - The Nature of Contracts: Formation, Terms, Remedies for Breach 1. Introduction to Contracts ● ● ● Definition: A contract is a legally binding agreement between two or more parties. Purpose: To outline the rights and obligations of the parties involved. Types: Written, oral, and implied contracts. 2. Formation of Contracts Offer: An offer by one party to the other with an intention of forming a contract legally. Requirements: Has to be obvious, particular, and proclaimed to the offeree. Acceptance: A to rebuttal of the terms stated in an offer and agreement to accept the terms stated therein. Requirements: That must be in a clear and blunt language and stated to the offeror. Consideration: An object which has a certain worth that has been passed from one party to the other. Types: It could be a promise in regards to what will be done in the future, an action taken in the present, or an omission. Capacity: Contract capacity which as we recall is the legal right of being able to enter into a contract. Parties: Must be of legal age and sound mind of a woman. Legality: The object of entering into the contract ought to be legal. Mutual Assent: The contract is only binding if both the parties to the contract have agreed on the terms of the contract. Meeting of the minds: The trading parties know and accept the main conditions for exchanging goods and services. 3. Terms of Contracts Express Terms: Definition: Terms agreed to and put in writing and formed part of the deal. Examples: Price, quantity and delivery date. Implied Terms: Definition: Terms which are not expressly expressed but may be implied either by the law or by the parties conduct. Types: Implied in fact and implied in law may differ in meanings with the former referring to the understanding that can be inferred from the actions of other people while the latter that can be inferred from the precedents of the legal systems. Conditions: Definition: Conditions which need to obtain so that the parties of the contract may perform their obligations. Types: There is the condition precedent and the condition subsequent as well as the concurrent conditions. Warranties: Definition: Credences that specific pieces of information concerning the goods or services are true. Types: Warranties include the express and the implied warranties.