Law of Contract

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Law of Contract by Mind Map: Law of Contract

1. definition of contract

1.1. agreement between 2 parties

1.2. enforceable by law

2. formation of contract

2.1. offer

2.1.1. offerer to offeree

2.1.2. enter into legally binding contract

2.1.3. example

2.1.3.1. job offer/ offer of service

2.1.3.2. petrol station/transaction by machine

2.1.3.3. carriage of person-airplane

2.2. acceptance

2.2.1. assent(agreement) to the terms

2.2.2. example

2.2.2.1. accepting job offer

2.2.2.2. supplying petrol to customers

2.2.2.3. providing air journey

2.2.3. communication of acceptance

2.2.3.1. effective = communicated to offerer

2.2.3.2. unconditional accpetance, accordance with contract

2.2.3.3. exceptions

2.2.3.3.1. waiver of communication

2.2.3.3.2. silence construed as acceptance

2.2.3.3.3. acceptance by post

2.3. consideration(valueable benefit)

2.3.1. defination

2.3.1.1. valuable consideration in law sense

2.3.1.1.1. rights,interest,profit,benefit

2.3.2. examples

2.3.2.1. a right

2.3.2.1.1. use path running through company

2.3.2.2. an interest

2.3.2.2.1. X% ownership in company

2.3.2.3. a profit

2.3.2.3.1. Y% share of company profit

2.3.2.4. A benefit

2.3.2.4.1. Free ticket to london

2.3.2.5. payment exchange for promise/performance

2.3.2.5.1. $X deposit and month payment of $Y

2.4. intention to create legal relations

2.4.1. parties bound by contract

2.4.1.1. entitled to enforce contract

2.4.2. Terms of a contract

2.4.2.1. Express terms

2.4.2.1.1. expressly agreed between parties

2.4.2.2. Implied Terms

2.4.2.2.1. read into the contract

3. uses of contracts

3.1. facilitate planning of projects

3.2. establish commercial responsibilities and obligations

3.3. allocate business risks

3.4. provide remedies if error occurs

4. commercial contratcs

4.1. carriage

4.1.1. travel on mrt

4.2. goods sales and supply service

4.2.1. romantic dinner at a restaurant

4.3. supply of service

4.3.1. ride at USS

4.4. sale of goods

4.4.1. buy something from shop

5. contracr in writing

5.1. specifies terms & intention of parties

5.2. entering into contract deliberately

5.2.1. not impulsively/under improper pressure

6. Terminating an offer

6.1. Withdrawal

6.1.1. prior to acceptance by offeree

6.1.2. offer communicated to offeree

6.1.3. otherwise withdrawal is not effective

6.2. rejection

6.2.1. counter offer = rejection

6.2.2. commujnicating by words or conduct

6.3. lapse of time

6.3.1. after specified period of time

6.3.1.1. acceptance to offer not effective

6.4. failure of condition

6.4.1. offer made subject to condition

6.4.2. condition fail = offer automatically terminated

6.4.2.1. purchse sport car, wrong delivered

6.5. death

6.5.1. either offeror or offeree

7. Terminating an acceptance

7.1. contract formed once acceptance

7.2. if offeree terminate acceptance

7.2.1. ensure accaptance doesnt reach offeror

8. Vititating factors

8.1. incapacity

8.1.1. minors

8.1.1.1. not legally aged to sign

8.1.2. mentally unsound

8.1.3. intoxicated perons

8.2. illegality

8.2.1. eg, stolen goods

8.3. duress or undue influence

8.3.1. treat or actual injury

8.3.1.1. held voif or voidable

8.4. misrepresentation

8.4.1. fraudulant (dishonest)

8.4.1.1. false representation made

8.4.1.1.1. knowingly

8.4.1.1.2. without belief in its truth

8.4.1.1.3. recklessly (careless truth/false)

8.4.2. negligent

8.4.2.1. carelessly made, no basis believe

8.4.3. innocent

8.4.3.1. representor resonable ground to believe

8.4.4. Remedy

8.4.4.1. recission

8.4.4.1.1. set aside contract

8.4.4.2. damages

8.4.4.2.1. monetary compensation

8.5. mistake

8.5.1. common mistakes

8.5.1.1. both make same mistake

8.5.2. mutual mistakes

8.5.2.1. misunderstand each other

8.5.2.1.1. cross purpose

8.5.3. unilateral mistake

8.5.3.1. one party mistaken

8.5.4. non est factum

8.5.4.1. signs document fundamentally different

9. End of contract (discharge)

9.1. performance

9.1.1. perfomed their obligations

9.2. agreement

9.2.1. both agree to terminate contract

9.2.1.1. can be within existing contract

9.2.1.2. new contract to replace old

9.3. breach

9.3.1. fails to fulfill terms/requirements

9.3.2. Remedies

9.3.2.1. award damages to injured party

9.3.2.1.1. liquidated damage

9.3.2.1.2. unliquidated damage

9.3.2.2. impose specific performance

9.3.2.2.1. order by court

9.3.2.3. injuction on defaulting party

9.3.2.3.1. court order

9.4. frustration

9.4.1. supervening event occcurs

9.4.1.1. different from originally contracted

9.4.1.1.1. neither party at fault

10. Avenue of claims

10.1. mediation

10.1.1. voluntary process

10.1.1.1. impartial,independent third party (mediator)

10.1.1.1.1. facilitate negotiations arriving to compromise

10.1.2. advantages

10.1.2.1. private process

10.1.2.1.1. no lawyers

10.1.2.2. maintains confifentiality

10.1.2.2.1. subject matter & identities of parties

10.1.2.3. fast and expident

10.1.3. disadvantage

10.1.3.1. resolution is non binding

10.2. arbitration

10.2.1. legal alternative to court

10.2.1.1. disputing parties arbitrators to settle

10.2.1.1.1. each side convince arbitrators

10.2.2. advantage

10.2.2.1. decision made us binding

10.2.2.2. maintain confidentiality

10.2.2.2.1. no bad publicity

10.2.2.3. expert arbritrator for dispute resolution

10.2.2.4. fast and expedient

10.2.2.4.1. less costly compared to court

10.3. tribunal

10.3.1. specialised method

10.3.1.1. resolving class of commercial disputes

10.3.1.1.1. quick & inexpensive to settle small claims

10.3.1.1.2. claims presented to refree for decision

10.3.1.1.3. decision is binding

10.4. litigation

10.4.1. going to court