1. 1 TOURISM AND HOSPITALITY LAW WEEK 4 LAW OF OBLIGATIONS

2. 2 Obligations may arise due to 3 main reasons: 1. Contract 2. Tort 3. Unjust Enrichment

3. 3 Contracts Agreement creating legally enforceable obligations. A contract * is a legal transaction * is an exchange of assent by parties * Results in an obligation * Enforceable by law

4. 4 Contracts For contract to be valid: * valid agreement b/w parties * capacity to contract * legal cause * legal subject * genuine assent * formal requirement

5. 5 Classification of Contracts 1. Valid Contracts: Possess all elements of contract. Fully binding and enforceable 2. Void Contracts: Contracts which are against law or morals, incapacity, lack of formality and impossibility. No legal effect.

6. 6 Classification of Contracts 3. Voidable Contracts: Contracts based on mistake, duress and fraud are void. May be rejected by the option of one of the parties. They are valid until declared void.

7. 7 Elements of a Valid Contract 1. Offer: For a valid offer: A) Intention to create legal relationship B) Definite and Certain C) Must reach to the oferree 2. Acceptance 3. Capacity A)Natural Incapacity B) Legal Incapacity

8. 8 Elements of a Contract 4. Genuineness of Assent: Differences of assent may be due to: A) Mistake: Immaterial and Material B) Fraud C) Duress 5. Legal Cause: Consideration 6. Legal Subject 7. Form of Contract