Contract Law

“A promise or set of promises which the law will enforce”. What is a Contract ? A legally binding agreement. In other words… “A promise or set of promises which the law will enforce”. The essence of a contract is that there should be an agreement between parties. What happens if you give a promise..? The agreement will create rights and obligations that may be enforced in the courts.

How can you create a contract or a promise…? Written Oral What would be the result If these rights and obligations are breached…? Damages for breach of contract Court may order performance by the party in default How can you create a contract or a promise…? Written Oral Partly oral and written

The person who make the offer Bilateral contracts - A promise by one party in exchanged for a promise by another party A one to one contract Offeror The person who make the offer Offeree The person to whom the contract was made Example : Sale of goods contract The Buyer promises to pay the price The Seller promises to deliver the goods

Unilateral contracts - A promise by one party in exchanged for an action by another party A one to all contract Many Offerees 1 Offeror Example : X promises a reward to anyone who will find his lost wallet. X bound himself to the promise, but no one is bound to search for the lost wallet. But if Y, having seen the offer, recovers the wallet and returns it, he is entitled to the reward.

Essential elements of a Contract 1) Agreement One party makes the offer, another party accepts the offer and both achieve consensus ad idem (meeting of the minds). 2) Consideration Both parties must have provided consideration, ie, each side must promise to give or do something for the other. 3) Intention to create legal relations The parties must have intended their agreement to have legal consequences. 4) Capacity The parties must be legally capable of entering into a contract.

Offer and Acceptance Offer- What is an offer….? An offer is an expression of willingness to contract on certain terms made with the intention that it shall become binding as soon as it is accepted by the person to it is addressed. Offer may be expressed or implied. expressed- verbally or writing Implied – by the conduct of parties

Are these Offers………. All offers must be communicated to the offeree. Display of Goods at a Shop Goods displayed in a shop is NOT an offer but an invitation to treat. Pharmaceutical society of Great Britain Vs. Boots Cash Chemist 1953 A self service pharmacy displays drugs in racks and allows customers to select and buy the product. A customer selects a product that cannot be sold without the authority of a pharmacist. Held - Even though the customer could select a drug, he will be allowed to buy it only when the pharmacist approves the purchase All offers must be communicated to the offeree. A person cannot accept an offer without having knowledge of the offer.

Therefore, the mere display of goods in the shelf does not amount to an offer and offer is made by the customer ( can I buy this ? ). Fisher V. Bell The defendant was charged with the offence of offering a knife by displaying it at his shop. Lord Paker J. stated; “the display of an article with a price on it in a shop window is an invitation to treat.” Held – display of goods does not mount for an offer.