INTENTION+TO+CREATE+A+LEGAL+RSHIP+NOTES.docx

INTENTION+TO+CREATE+A+LEGAL+RSHIP+NOTES.docx

《INTENTION+TO+CREATE+A+LEGAL+RSHIP+NOTES.docx》由会员分享，可在线阅读，更多相关《INTENTION+TO+CREATE+A+LEGAL+RSHIP+NOTES.docx（10页珍藏版）》请在冰豆网上搜索。

INTENTION+TO+CREATE+A+LEGAL+RSHIP+NOTES

CONTRACTLAW

CLASSIFICATIONOFCONTRACTS

Contractscanbeclassifiedaccordingtoformation,validityandperformance.

Formation

Contractsclassifiedaccordingtoformationcanbeexpress,impliedorquasicontracts.

1.ExpressContracts–Contractsformedexpresslyarecreatedbyexpresswords,eitherwrittenorspoken.

2.ImpliedContracts–Acontractcreatedimpliedlyiscreatednotbywords,eitherwrittenorspoken,butbytheconductoractionsoftheparties.Theconductofthepartiesleadstotheimplicationthatthereisacontract.

3.QuasiContracts–Createitindependentlyofthewishesofthepartiesbyoperationoflaw.Quasicontractreferstotheremedyprovidedbythecommonlawthatcompelspaymentofmoneyformonepersontoanotherwhenjusticerequires.Examplewheremoneyhasbeenpaidbyapersonunderduress,aquasicontractwillallowthepersonwhohaspaidthemoneyunderduresstorecoverit.

Validity

Contractsclassifiedaccordingtovaliditycanbevoid,voidable,unenforceableorillegal.

1.VoidContract–isonethatisofnolegaleffect.

2.Avoidablecontract–isonethatcanbeavoided（rescinded）byoneparty.

3.Anunenforceablecontract–isonethatcannotbeenforced,duetoatechnicalfault.

4.Anillegalcontract–isonewherethepurposeorobjectofthecontractisillegalorunlawful.

Contractsarelegalagreementsthatcanbeenforcedbythelaw.

Thelawofcontractisthebranchofcivillawthatisconcernedwiththeenforcementofagreements.Acontractcanbedefinedasanagreementbetween2ormorepartiesthatcreatesrightsandobligationsthatareenforceablebylaw.

Notalltheagreementsyoumakeinyourlifewillbeenforceable.Tobevalidacontractmustmeetthreeessentialelements:

1.Intentiontocreatealegalrelationship

2.Agreement

3.Consideration

Intentiontocreatealegalrelationship+Agreement+Consideration=Contract

INTENTIONTOCREATEALEGALRELATIONSHIP

Thefirstelementofavalidcontractrequiresthepartiestointendtocreatealegalrelationship.Todeterminewhetherthereisanintentiontocreatelegalrelations,thelawlooksatthenatureoftheagreement.Iftheagreementisofasocialordomesticnature,thelawhascreatedapresumptionthatsuchagreementsdonothaveanintentiontocreatelegalrelations.

Socialagreements

Socialagreementsaremadebetweenfriendsandaremadewithouttheintentionofbeingenforceable.Domesticagreementsmadebetweenmembersofafamily,forexample,parentsandchildren,alsodonotcreatealegalrelationship.

Example:

ANagreementwherebythefatheragreestoloadthedishwasherandthechildrentounloaditconstitutesadomesticagreementnotalegalone.

BalfourvBalfour[1919]2KB571

ToddvNicol[1957]SASR72

BusinessAgreements

Agreementsofabusinessorcommercialnaturearetreateddifferentlyfromsocialordomesticagreementsbythelaw.Courtsassumethatbusinessagreementsareintendedtocreatealegalrelationship.Thispresumptioncanberebuttedifevidenceisproducedtoshowthattherewasclearlynointentiontocreatealegallybindingagreement.

Ifanagreementismadeinthecourseofbusinessdealings,thenintheabsenceofexpresswordstothecontrary,thecourtswillsaythatlegalrelationswereintended.

EdwardsvSkyways[1964]1WLR349

JonesvVernonPoolsLtd[1938]2AllER626

AGREEMENT

Thesecondelementthatmustbepresenttocreateavalidcontractisagreement.Anofferisaproposal.Whenitisaccepted,itcreatesalegallybindingcontract.

Bothpartiesmustagreeonthesubjectmatterofthecontract.Acontractualagreementisformedwhenoneparty（theofferor）makesanoffertoenteracontractandtheotherparty（theofferee）acceptsthetermsoftheproposal.

Offer+Acceptance=Agreement

Sometimesduringnegotiations,thepartiesmaybeatcrosspurposesandwhatisoneparty’smindisnotcommunicatedtotheotherperson.Butintheendaclearunderstandingofwhathasactuallybeenagreedtoshouldexist.Thisisreferredtoas‘themeetingoftheminds’/Howeveritisnotalwaysclearwhethertherehasbeenameetingofthemindsandthecourtisaskedtodecidethatthetermsofthecontractwere.

OFFER

Thefirststageinreachinganagreementoccurswhenanofferismadebytheofferortotheofferee.

Animportantelementtobedecidedinconsideringthevalidityofacontractiswhetherornottherehasbeenavalidoffer.Iftherehasbeennovalidoffertherecanbenoacceptance,andhencenocontract.

Makinganofferisthefirststepinreachinganagreement.Anofferneedstobeclearlycommunicated.Itcanbewritten,verbalormadebyaction.Exactlywhatisbeingofferedshouldbeclearenoughsothattheoffereecandecidewhethertoacceptorrejectit.

INVITATIONTOTREAT

Anoffermustbedistinguis