Back To Basics - Contracts Law

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Across
  1. 5. A statement of desire to enter into a contract with the intention of establishing legal relations after acceptance. It does not include an invitation to treat, puffery, mere supply of information or a mere statement of intention.
  2. 6. When a contract by its express or implied terms infringes a recognised principle of public policy, the courts may refuse to give effect to the contract. A contract that requires, or contemplates the possibility of, the commission of a crime, tort or breach of statute by one or both of the parties.
  3. 7. The meeting of the minds between two mutuals who agree to be bound by the terms of a contract. There is no specific way to perform this act, rather it is contextual of the offer to the contract. This act is only valid if the service rendered is exactly what was contained in the terms of the contract.
  4. 8. Influence The courts will determine the quality of consent between both parties to a contract. The quality of consent must be free and voluntary. The main issue to consider is whether one party was coerced by the other to sign a contract when they otherwise may not have wanted to.
  5. 11. The terms that the parties have agreed to must be clearly identifiable. The Contract must not be incomplete - parties must not have failed to agree on essential parts of the contract. The contract must not be uncertain - the language used to define obligations must not be so vague that the Court cannot attribute meaning to what was promised. The promise must not be illusory one party must not retain an unfettered freedom to perform the promise.
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  1. 1. The bargain or ‘quid pro quo’ that underlies a contract. For one to be able to enforce a promise, one must give something in exchange. May consist of some right, interest, profit or benefit accruing to the one party, or a forbearance, detriment, loss, responsibility given, suffered or undertaken by another. The benefit must be given in return for the promise.
  2. 2. The parties to the agreement must display a genuine willingness to create legal relations. To determine the genuinity of the parties to enter into a contract undergoes an objective test, where the courts look at whether a reasonable person, in analysing the words and actions of the parties, could conclude that on balance of probabilities there was a willingness to be bound by the terms of the offer.
  3. 3. The giving of false information by one party to the other before the formation of the contract, which induces the other party to enter into the contract. If a party enters into a contract in reliance on that false information and suffers loss as a result, the contract can be deemed void or they may claim reparations in the form of damages.
  4. 4. Terms Generally in cases where an intended term is omitted from a contract, the court may imply such a term on a case by case basis, by using the objective test of what a reasonable person would conclude as to the parties’ intentions
  5. 9. Terms Terms between two parties that have been agreed upon and it must be unambiguous and clearly detailed. These terms are usually written into the contract however it can also be verbal.
  6. 10. The weaker party suffers from a disability, the stronger party knows of this disability or ought to know of it; and the stronger party takes unfair and unconscionable advantage of that disability to secure an unfair bargain and a benefit.