1. FORM OF CONTRACT

2. INTRODUCTION  It is the way in which the content of the contract exists or appears to others. It answers the question as to how third parties such as court could know the agreement of parties. Therefore, contract may exist either in written form or oral form. When contract is in written form, a court or third parties know the agreement by reading a paper on which it was written

3. FREEDOM OF FORM  Most non-lawyers believe that for a contract to be legally binding, it must be made in writing and signed at least by the parties to contract. But these people forget that they have entered into so many contracts in their life without following written forms. However, the law gives freedom to the parties to choose either written or form. So contract can be valid if consent, object and capacity requirements are fulfilled.

4. LIMITATION ON FREEDOM OF FORM Freedom of form is not absolute. The freedom may be limited by law or the offeror. An offeror has a freedom to determine the form of acceptance The reason for such limitation may be; 1. Evidentiary value 2. Recalling content of contract 3. Indication of intention to create legal relation

5. CONTRACTS MADE IN WRITTEN FORM A)contracts required by the law to be made in writing: 1. Contract relating to immovable 2. Contract with public administration art.387 B) contracts required to be made in writing by the parties: Even if the law has not expressly provided written form as a mandatory requirement for validity of contract, parties may themselves provide written form C) Preliminary contract: A contract that intends to lead to another contract shall be made in writing if the contract to which it leads is required to be made in writing either by the law or the parties. The best example is agency contract. If the agent's power is to enter into a contract in writing he should be conferred with such power in writing.

6. EFFECTS OF FORM When the parties or the law requires the contract to be made in writing, failure to comply with such requirement make the contract a mere draft, The contract never exists until the formality requirement is fulfilled.

7. EFFECT OF CONTRACT Art. 142-143, 145-146 Somali Civil Code of 1973

8. INTRODUCTION The two major principles of contract are freedom of contract and sanctity of contract. Sanctity of contract indicates that parities are bound by their agreement. To make a serious promise certainly involves a moral duty to keep it. So, effect of a contract implies that it becomes the law of the nation in the sense that the executive has a constitutional duty to implement it and the judiciary has a constitutional duty to interpret it.

9. INTERPRETATION OF CONTRACT Since a contract is a law, it may be interpreted. A law is interpreted when it is vague, silent, illogical, ambiguous, and contradictory. So interpretation is giving meaning to the provisions of the contract. If the provision of the contract is clear, there is no need to interpret Art.147-150

10. SEARCHING INTENTION OF PARTIES Presumption of Good Faith Having the presumption of good faith in mind, the court uses the following techniques to arrive at the probable common intention of parties at the time of conclusion of the contract: a)Conduct of the parties b)Context of the contract c)Business practice d)Good faith e)Equity f)Positive interpretation g)Interpretation in Favor of Debtor

11. QUESTIONS??? Comments!!!