CHAPTER 2 CONTRACT I : FORMATION OF CONTRACT

1. ELEMENTS OF A CONTRACT

2. Offer Acceptannce - Consideration - Intention to create legal relations - Capacity to contract

3. Capacity to contract

3.1. - the person has the ability to understand the terms of contract and the failure to fulfil his contract obligation can result in legal liablity.

3.2. A minor can, however contract for 'necessaries', example things or services suited to the minor's condition of life at the time of the sale or delivery.

4. -An acceptance must be absolute and unqualified. In other words, acceptance must match the terms of the offer.

5. A proposal, when accepted, it becomes promise.

6. example :when someone is promise to give value for a promise. its come from many form, not just in terms of money.

7. if 1 party fails to fulfil his contract obligation, the other party can enforce the contract in court.

8. Types of Offer

8.1. 1. Unilateral offer

8.1.1. identify of offeree not known in advance

8.1.2. acceptance is by perfomance

8.2. 2. Bilateral offer

8.2.1. one where the offeree is identifiable

8.2.2. acceptance is made by communication

9. Offer

9.1. - when a person shows his willingness to do something or stop something.

9.2. an offer can be made in writting and in orally.

9.3. Or from telephone conversation or walk-in enquiry

10. Acceptance

11. Consideration

11.1. - Consideration is value for a promise.

11.2. example :when someone is promise to give value for a promise. its come from many form, not just in terms of money.

12. Intention to create legal relations

12.1. - when two parties have the intention to create legal relation its mean they bound by the agreement.