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CONTRACT by Mind Map: CONTRACT

1. FORMATION OF CONTRACT

1.1. INTRODUCTION

1.1.1. Contract is an agreement between 2 or more parties that is legally enforceable

1.1.2. If one party fail for perform his bargain, the other party can bring an action in court

1.1.3. Oral Agreement is an agreement that is entered into verbally as opposed to an agreement made in writing.

1.2. ELEMENTS OF CONTRACT

1.2.1. OFFER

1.2.1.1. Meaning

1.2.1.1.1. When a person show his willingness to do something or stop from doing something, in exchange for something value, he make a proposal or an offer

1.2.1.1.2. Offeror- Person who makes an offer

1.2.1.1.3. Offeree- Person to whom an offer is made

1.2.1.2. Type Of Offer

1.2.1.2.1. Unilateral Offer

1.2.1.2.2. Bilateral Offer

1.2.1.2.3. Offer Distinguished

1.2.2. Acceptance

1.2.2.1. Meaning

1.2.2.1.1. when an offeree accepts an offer, he is said to have made known the offeror that he agrees to te term of the offer.

1.2.2.1.2. Counter-offer- "i accept but..." "provide that..."

1.2.2.2. Distinction

1.2.2.2.1. OFFER

1.2.2.2.2. OFFER

1.2.3. Consideration

1.2.3.1. Meaning

1.2.3.1.1. value for a promise

1.2.3.1.2. just like, what you give, you will get back

1.2.3.1.3. for example, you pay fee for tuition, and you get knowledge

1.2.4. CAPACITY

1.2.4.1. Meaning

1.2.4.1.1. has the ability to understand the terms of the contract.

1.2.4.1.2. a person who lacks contractual capacity i someone who does not have the power to enter into contract.

2. TERMS OF CONTRACT

2.1. INTRODUCTION

2.1.1. The terms of a contract lay down the parties right and abilities

2.1.2. no written document as a reference as point may be hard to identify the contractual term.

2.1.3. Parliament passed laws that imply terms that one can be bound by, even if they do not appear on the contract.

2.2. DISTINCTION

2.2.1. TERMS

2.2.1.1. Is statement or assurance tat form part of the contract.

2.2.1.2. part of the contract.

2.2.1.3. are either express or implied

2.2.1.4. can be implied by the court and statutes

2.2.1.5. type of term

2.2.1.5.1. conditions

2.2.1.5.2. warranties

2.2.1.5.3. innominate terms

2.2.1.6. Implied by

2.2.1.6.1. Court

2.2.1.6.2. Statutes

2.2.2. REPRESENTATIONS

2.2.2.1. A statement or assurance that persuade the other party to enter into contract. but, it does not form part of the contract

2.2.2.2. misrepresentation: a statement that is untrue or misleading.

2.2.2.3. type of misrepresentions

2.2.2.3.1. innocent

2.2.2.3.2. negligent

2.2.2.3.3. fraudulent

2.2.3. CWI Meaning

2.2.3.1. C - Condition

2.2.3.1.1. Vital term, when a condition is breached, the innocent party is entitled to terminate the contract

2.2.3.2. W - Warranties

2.2.3.2.1. When the warranty is breached, the innocent party may recover damages but he may not trade the contract as terminated

2.2.3.3. I - Innominate terms

2.2.3.3.1. Term that cannot be classified as a condition or warranty right from the outset

2.3. EXCLUSION CLAUSES

2.3.1. A terms that serve 2 main functions

2.3.1.1. Exclude the party liability for breach of contract completely

2.3.1.2. It limits the compensation payable in respect of certain breach of duties

2.3.2. Can be found in notice and written document

2.3.2.1. It can be the ticket,receipt,schedule

2.3.3. Must be incorporated into the contract

2.3.3.1. Must be brought to the notice or attention of the other party

2.3.3.2. Contained in a signed document the person who signed it is presumed to have notice of it (FRAUD)

2.3.4. Must be clear and unambiguous

2.3.4.1. Unambiguous - Has only one meaning or interpretation

2.3.4.2. Contained in a signed document and unsigned document or display on a notice

3. VITIATING FACTOR, DISCHARGE OF CONTRACT & CONTRACTUAL REMEDIES

3.1. VITIATING FACTOR

3.1.1. Either render an agreement void or a contract voidable.

3.1.2. COERCION

3.1.2.1. Is committed where a person commits or threatens to commit any act forbidden by the penal code in order to cause another person to enter into an agreement

3.1.2.2. Is committed where a person unlawfully detains or threatens to detain the property of another person so as to procure consent to the agreement

3.1.3. UNDUE INFLUENCE

3.1.3.1. Exists where a person is in a position to dominate the will of another and use that position to obtain an unfair advantages over the other

3.1.4. FRAUD

3.1.4.1. Is committed where a person makes untrue statement, conceals a fact, has no intention to perform the promise he made or any act with the intention to deceive

3.1.5. MISREPRESENTATION

3.1.5.1. Statement that is untrue

3.1.6. MISTAKE

3.1.6.1. Wrong belief at the time of contract that certain facts are true. Where a person believes that a condition or event exist when it does not

3.2. DISCHARGE OF CONTRACT (where the contract has to end)

3.2.1. BY BREACHED

3.2.1.1. When a party failure, without a leisure excuse, to perform its promise

3.2.1.2. Such as causing loss and damages to the affected party

3.2.2. BY PERFORMANCE

3.2.2.1. Both party who performs a contract in accordance with its term is discharged from any further obligations

3.2.3. BY FRUSTRATION

3.2.3.1. Where an event outside the control of either contracting party occurs

3.2.3.2. Such that it is impossible or illegal to perform the contract, it is said to be discharged by frustration

3.2.4. BY AGREEMENT

3.2.4.1. Performance of contract maybe subject to a condition precedent allowing for discharge upon the failure of a certain event

3.2.4.2. Such as in a contract for the sale of land where the purchaser has been unable to obtain finance

3.3. CONTRACTUAL REMEDIES

3.3.1. MEANING

3.3.1.1. the relief that a plaintiff is entitled to receive once the court finds the defendant in breach of contract

3.3.2. RESCISSION

3.3.2.1. For breach occurs where an innocent party terminates the contract when the defaulting party breach a condition

3.3.2.1.1. Rescission ab initio

3.3.2.1.2. Rescission for breach

3.3.3. DAMAGES

3.3.3.1. Is money compensation

3.3.3.2. Only recover

3.3.3.2.1. losses that arise naturally as a normal consequence of the breach of contract

3.3.3.2.2. losses that the parties knew were likely to result from the breach-when they entered into contract

3.3.4. SPECIFIC PERFORMANCE

3.3.4.1. A court order requiring the defendant to perform the promise in the contract

3.3.5. INJUNCTION

3.3.5.1. A court order forbidding or commanding the defendant to perform certain act

3.3.5.2. Temporary injunction

3.3.5.2.1. Pending full trial of the case - to preserve the status QUO until the case decided

3.3.5.3. Perpetual injunction

3.3.5.3.1. Can only be granted after the case has been decided

3.3.5.4. Prohibitory injunction

3.3.5.4.1. Prevents a defendant from doing or continuing an action

3.3.5.5. Mandatory injunction

3.3.5.5.1. order a defendant to do or act

3.3.6. RESTITUTION

3.3.6.1. Is strictly not a contractual remedy.

3.3.6.2. it is an order requiring a party to return to the other benefit he received under the transaction

3.3.6.3. For example Syahmi booked a cruise holiday with SmileyBook and pay the contract price in at once but suddenly the cruise is sinking so the contract is considerate to be frustrated