THE LAW OF CONTRACT
OBJECTIVE
To provide the candidate with a broad understanding of the following concepts pertaining to
the Law of Contract;
The nature of a contract.
Formation of a contract.
Classification of Contracts.
Terms of contract; Exemption clauses, conditions and warranties.
Vitiating factors; mistake, misrepresentation, duress and undue influence.
Privacy of contract.
Termination and discharge of a contract.
Remedies for breach of contract.
Limitations of actions.
INTRODUCTION
This topic deals with the formalities that are involved before a contract comes into existence.
It then looks at the terms of contract, vitiating factors and the eventual termination or
discharge of a contract.
CONTEXT
Whether we know it or not we all contract at some point in time in one way or another. This
therefore is a chapter that most exam questions will be centered on to ensure that the student
clearly can explain from the formation to discharge of a contract. It’s of high importance to
understand the various concepts brought out in this chapter.
We all contract whether consciously or sub consciously. The bulk of the day to day contracts
we make do not have all the formalities and are merely agreements. Contract law is therefore
a very vital chapter as most persons and companies contract on a daily basis. Adept
knowledge of this chapter will make the candidate appreciate the machinations behind the
1
, procedures and rules of contracts and assist in the ascertainment of a realization of their own
rights and the remedies available in case of breach of contract.
THE LAW OF CONTRACT
A contract may be defined as a legally binding agreement made by 2 or more parties. It has
also been defined as a promise or set of promises a breach of which the law provides a
remedy and the performance of which the law recognizes as an obligation.
The most important characteristic of a contract is that it is enforceable. The genesis of a
contract is an agreement between the parties hence a contract is an enforceable agreement.
However, whereas all contracts are agreements, all agreements are not contracts.
TYPES OF CONTRACTS
Contracts may be classified as:
1. Written / specialty contracts
2. Contracts requiring written evidence
3. Simple contracts
4. Contracts under seal
1. WRITTEN CONTRACTS
These are contracts which under the law must be written, that is embodied in a formal
document e.g. hire purchase agreement, contract of marine insurance, contract of sale of land.
Contracts under seal: this is a contract drawn by one party, sealed and sent to the party /
parties for signature. Such a contract requires no consideration e.g. a lease agreement,
mortgage, charge.
2. CONTRACTS REQUIRING WRITTEN EVIDENCE
These are contracts which must be evidenced by some notes or memorandum. Contents of the
note / memorandum: -
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OBJECTIVE
To provide the candidate with a broad understanding of the following concepts pertaining to
the Law of Contract;
The nature of a contract.
Formation of a contract.
Classification of Contracts.
Terms of contract; Exemption clauses, conditions and warranties.
Vitiating factors; mistake, misrepresentation, duress and undue influence.
Privacy of contract.
Termination and discharge of a contract.
Remedies for breach of contract.
Limitations of actions.
INTRODUCTION
This topic deals with the formalities that are involved before a contract comes into existence.
It then looks at the terms of contract, vitiating factors and the eventual termination or
discharge of a contract.
CONTEXT
Whether we know it or not we all contract at some point in time in one way or another. This
therefore is a chapter that most exam questions will be centered on to ensure that the student
clearly can explain from the formation to discharge of a contract. It’s of high importance to
understand the various concepts brought out in this chapter.
We all contract whether consciously or sub consciously. The bulk of the day to day contracts
we make do not have all the formalities and are merely agreements. Contract law is therefore
a very vital chapter as most persons and companies contract on a daily basis. Adept
knowledge of this chapter will make the candidate appreciate the machinations behind the
1
, procedures and rules of contracts and assist in the ascertainment of a realization of their own
rights and the remedies available in case of breach of contract.
THE LAW OF CONTRACT
A contract may be defined as a legally binding agreement made by 2 or more parties. It has
also been defined as a promise or set of promises a breach of which the law provides a
remedy and the performance of which the law recognizes as an obligation.
The most important characteristic of a contract is that it is enforceable. The genesis of a
contract is an agreement between the parties hence a contract is an enforceable agreement.
However, whereas all contracts are agreements, all agreements are not contracts.
TYPES OF CONTRACTS
Contracts may be classified as:
1. Written / specialty contracts
2. Contracts requiring written evidence
3. Simple contracts
4. Contracts under seal
1. WRITTEN CONTRACTS
These are contracts which under the law must be written, that is embodied in a formal
document e.g. hire purchase agreement, contract of marine insurance, contract of sale of land.
Contracts under seal: this is a contract drawn by one party, sealed and sent to the party /
parties for signature. Such a contract requires no consideration e.g. a lease agreement,
mortgage, charge.
2. CONTRACTS REQUIRING WRITTEN EVIDENCE
These are contracts which must be evidenced by some notes or memorandum. Contents of the
note / memorandum: -
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