The Contract Law

Extract

[...] Example: A homeowner (who is over the age of 18 and of sound mind) signed a contract with the appliance store to buy a refrigerator. The homeowner pays for the refrigerator and the appliance store presents the refrigerator for the home owner to take home. Categories of the Contract Law (cont.) 2. Void Contracts - a void contract is not a contract and has no effect in a court of law and cannot be enforced in a court of law. Most commonly, a void contract will be missing one or all of the essential elements needed for a valid contract. [...]

[...] + Dictionary of Law defines The refusal or failure by a party to a contract to fulfill an obligation imposed on him under that contract + Section 40 of The Contract Act 1950 When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promise may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance Breach of Contract - 2 types • Breach of contract may be either anticipatory or actual. Anticipatory breach – occurs where one party announces in advance of the due date for performance that he intends not to perform his side of the bargain. The innocent/injured party may sue for damages immediately the breach is announced . [...]

[...] oral or written + implied form – the acceptance is made other than in words e.g. by conduct Consideration + each party must contribute something in reciprocation of the other's promise + engineering contract dictionary . Something which is given, done or forborne by one party in return for some action or inaction on the part of the other party. It must have some legal value + Section When, at the desire of the promisor, the promisee or the other person has done, or abstained from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise + Section 24 follows on sec 10(1) the consideration or object of an agreement is lawful unless : * it is forbidden by law * it is of such a nature that, if permitted, it would defeat any law * it is fraudulent (intended to deceive) * it involves or implies injury to the person or property of another * the court regards it as immoral, or opposed to public policy Certainty + the terms of an agreement must be certain or capable of being made certain + Section 30 Agreements, the meaning of which is not certain or capable of being made certain, are void Capacity + the parties must have legal capacities to contract + Section 11 of the Contracts Act 1950 Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject. [...]

[...] Such a failure to perform may be intimidated by words or conduct and in law is held to be a repudiation • Breach During Currency of the Contract + this is a situation where the promisor has started his promise but fails to complete the performance, i.e. the party to a contract has repudiated the contract before the performance has been fully undertaken Breach of Contract - Remedy Remedy: • The means provided by the law for a recovery of a right or a compensation for a wrong. • Relief provided to the innocent/injured party • Remedies are categorized as legal or equitable in nature. [...]

[...] (CO1:PO3) Describe and explain Construction disputes. (CO1:PO3) The Contract Law Definition of contract : A legally binding agreement between two or more parties by which rights are acquired by one or more to acts or forbearances on the part of the other or others Sir William Anson A binding agreement between two or more persons which creates mutual rights and duties and which is enforceable at law Engineering Contract Dictionary Sources of the Contract Law Written Law • Legislation Contract Act 1950 (Act 136) Civil Law Act 1956 (Act 67) Sale of Goods Act 1957 (Act 382) Specific Relief Act 1950 (Act 137) Insurance Act 1996 (Act 533) Unwritten Law • Judicial Decisions Case Law Judicial Precedent Categories of the Contract Law There are 4 categories of contract: 1. [...]