2. INTRODUCTION When the word “contract” is mentioned, there is a tendency for many people to see this as some form of formal written document. When asked how often they enter into a contract, many would say only occasionally, as when they purchase a car, a house or enter into a loan agreement with the bank. In other words, ‘contract’ is associated with a narrow range of activity involving lawyers, documents and agreements concerning things of substantial value.

3. An agreement made between two or more person whereby the parties to the agreement are bound by a LEGAL RELATIONSHIP.

4. ALL CONTRACTS ARE AGREEMENT BUT NOT ALL AGREEMENTS ARE CONTRACT!

5. The Latin phrase consensus ad idem (consensus as to the same thing) describes this concept of agreement. The essence of the phrase is that the parties to contract must have “meeting of minds”

6. TYPES OF CONTRACT SIMPLE CONTRACTS SPECIALTY CONTRACTS ORALWRITTEN (DEED) Contract for Sales of Goods Contract for Supply of Goods Contract of Service Contract for Services ½ Oral & ½ Written

7. There is no necessity for a contract to be in writing. A contract can be made orally, in writing or it could be a combination of both oral and written. Only contract involving the sales and transfer of land needs to be in written form.

8. Understanding Contract What is the Agreement? What is within TheAgreement?‘Terms’ What defects In the Agreement? ‘Vitiating factors’ How the contract IsDischarged? RemediesAvailable!

9. What is the agreement? Offer –Unilateral offer –Bilateral offer –Invitation to treat Acceptance –General rule –Postal rule Intention to create Legal Relations –Social and domestic agreement –Commercial agreement Consideration –Executed –Executory –Past Capacity to Contract

10. What is within the agreement? TERMS EXPRESS TERMS IMPLIED TERMS INNOMINATE TERMS EXEMPTION CLAUSES/EXCLUSION CLAUSES CONDITIONS WARRANTIES

11. What Defects in the Agreement? Misrepresentation –Fraudulent –Innocent –Negligent Mistake –Common mistake –Mutual mistake –Unilateral mistake –Non est factum Duress Undue Influence Illegality Contract in Restraint of Trade VITIATING FACTOR

12. Discharge of Contract Performance. Agreement. Breach (aka: repudiation) Frustration.

13. VOID VOIDABLE SPECIFIC PERFORMANCE INJUNCTION QUANTUM MERUIT REMEDIES