1. Contractual Requirements Management and Legal Skills

2. Law of Contract - Definition An agreement which creates or is intended to create a legal obligation between the parties to it. http://www.scotland.gov.uk/Topics/Justice/law/damages/contract

3. Law of Contract - Definition An agreement which creates or is intended to create a legal obligation between the parties to it. http://www.scotland.gov.uk/Topics/Justice/law/damages/contract There must always be at least two parties to an agreement

4. Law of Contract - Definition An agreement which creates or is intended to create a legal obligation between the parties to it. http://www.scotland.gov.uk/Topics/Justice/law/damages/contract There must be ‘consensus in idem’, meaning ‘agreement about the same thing’

5. Law of Contract - Definition An agreement which creates or is intended to create a legal obligation between the parties to it. http://www.scotland.gov.uk/Topics/Justice/law/damages/contract A social or personal obligation (eg we agree to go out for a meal) does NOT create a legal obligation

6. How a contract is formed  There is an offer by one party, and an acceptance by the other.  The offer and acceptance can be spoken or written.  The offer and acceptance can be inferred from the actions of the parties.

7. How a contract is formed  An offer by one party, and an acceptance by the other.  The offer and acceptance can be spoken or written.  The offer and acceptance can be inferred from the actions of the parties. So if you take goods to a cash desk in a shop this shows you are offering to buy. The cashier’s acceptance of your payment shows he/she is accepting your offer.

8. Offer, or willingness to negotiate  An offer is a statement of willingness to contract on specific terms. If the terms are accepted the contract is binding.  Willingness to negotiate is an invitation to offer, eg advertising goods for sale, catalogues or display of goods in a shop window

9. Acceptance  Must meet the offer – agreement on the same thing. In this case a lawful contract has been formed.  If acceptance includes terms that were not in the offer, no contract is formed.  This would be a counter-offer, which would need to be accepted by the other party for a contact to be formed.

10. Time of Acceptance  If the offer is stated to be open for a period of time it cannot be revoked within that time. If it is accepted within that time a contract is formed.  For acceptances made by post, the acceptance time is determined by the date and time it was posted.

11. Recall of offer  If the offerer undertakes to keep the offer open for a definite period, it cannot be recalled within that time.  If the offerer states that acceptance must be made within a specified time, and that period of time lapses, the offer is automatically recalled.

12. Recall of Offer  If the offerer does not state a time within which acceptance must be made, the offer remains open for a ‘reasonable time’.  Where there is no promise to keep the offer open for a period of time, it can be recalled at any time before it is accepted.  An offer is automatically recalled by the death, insanity or bankruptcy of either party.

13. Recall of Acceptance  If an acceptance was posted and the party change their mind regarding acceptance they can send another communication:  If the second communication arrives after the first, the acceptance is binding.  If the second communication arrives at the same time or before the first, there is no binding contract.

14. Matters affecting the validity of a contract  Contracts can be:  Void – there is no contract  Voidable – they are valid but can be set aside  Unenforceable – cannot be enforced by the courts

15. Matters affecting the validity of a contract  Contracts can be:  Void – there is no contract  Voidable – they are valid but can be set aside  Unenforceable – cannot be enforced by the courts Eg people under 16 have no capacity to contract – any contract made is void. Contracts with insane people are also void.

16. Matters affecting the validity of a contract  Contracts can be:  Void – there is no contract  Voidable – they are valid but can be set aside  Unenforceable – cannot be enforced by the courts Eg people between 16-18 can apply to court to have contract set aside. So can people who entered into a contract whilst intoxicated.

17. Matters affecting the validity of a contract  Contracts can be:  Void – there is no contract  Voidable – they are valid but can be set aside  Unenforceable – cannot be enforced by the courts Eg sporting agreements or gambling agreements are unenforceable by the courts.

18. Error and Misrepresentation  Mutual error – both parties have misunderstood – contract is void/voidable  Unilateral error – one party has paid more for something that it is worth  Innocent misrepresentation – making a false statement, believing it to be true  Fraudulent misrepresentation – making a false or reckless statement, unaware whether it’s true

19. Breach of Contract  One of the parties fails to carry out his/her obligations  Other party is entitled to damages or compensation  Breaches can be:  Failing to perform the contract  Delaying performance (missing a deadline)  Unsatisfactory or defective performance

20. Breach of Contract  One of the parties fails to carry out his/her obligations  Other party is entitled to damages or compensation  Breaches can be:  Failing to perform the contract  Delaying performance (missing a deadline)  Unsatisfactory or defective performance Refusing to carry out his/her part of agreement. Innocent party has right to withdraw.

21. Breach of Contract  One of the parties fails to carry out his/her obligations  Other party is entitled to damages or compensation  Breaches can be:  Failing to perform the contract  Delaying performance (missing a deadline)  Unsatisfactory or defective performance If timing is important, innocent party has right to withdraw. Not the case if timing not important but damages may be claimed if appropriate.

22. Breach of Contract  One of the parties fails to carry out his/her obligations  Other party is entitled to damages or compensation  Breaches can be:  Failing to perform the contract  Delaying performance (missing a deadline)  Unsatisfactory or defective performance Depends on level – may be able to withdraw if breach is material

23. Now complete the worksheet to test your knowledge

24. Some Further Resources  www.musiclawupdates.com www.musiclawupdates.com  http://www.scotland.gov.uk/Topics/Justic e/law/damages/contract http://www.scotland.gov.uk/Topics/Justic e/law/damages/contract