LAW OF CONTRACT

OVERVIEW

1.
2.
3.
4.

1.1

Introduction
Offer and Acceptance
Intention to create legal relations
Consideration

LAW OF CONTRACT
1.0 INTORUDCTION

1. A contract is made where parties have

reached agreement or where they are
deemed to have reached agreement.
2. There are three fundamental elements in any
simple contract
1. Agreement : The parties must have reached or
deemed to have reached agreement.
2. Intention : the parties must have intended to
create legal relations.
3. Consideration :Any advantage or benefit moving
from party to another is known as consideration.
1.2

LAW OF CONTRACT
1.0 INTORUDCTION

There are three fundamental elements in any

simple contract
1. Agreement : The parties must have reached or
deemed to have reached agreement.
2. Intention : the parties must have intended to
create legal relations.
3. Consideration :Any advantage or benefit moving
from party to another is known as consideration.

In any transaction where one or these

elements missing there is not
contract.
1.3

LAW OF CONTRACT
1.0 INTORUDCTION

3. An agreement may be in any manner

whatsoever:
1. In writing
2. By word of mouth
3. By inference from the conduct of the
parties and the circumstances of the case
4. By any contribution of the above modes.

1.4

LAW OF CONTRACT
1.2 OFFER AND ACCEPTNACE

1. Offer and acceptance is analysed to test

whether agreement was reached between
parties.
2. Terms must be certain
The terms of the offer mush be clear, complete
and final. Any statement falling short of this
requirement is not an offer.

3. Bilateral and Unilateral contracts

1. The proposal may call for an acceptance,
unqualified promise.
2. The offers proposal may be terms which call for
an act to be performed.
1.5

LAW OF CONTRACT
1.2 OFFER AND ACCEPTNACE

4. An invitation to reat is not an offer

5. Offer to sell land
Statement regarding the price being
preliminary only and not intended to be
finally binding.

6. Communication of the offer

1. An offer may be communicated in any
manner whatsoever. An offer may be
partly expressed and partly implied.
2. An offer may communicated to a particular
person or group of persons.
1.6

LAW OF CONTRACT
1.2 OFFER AND ACCEPTNACE

10. The communication of Acceptance

The general rule is that acceptance must be
communicated to the offerer.

11. Revocation
An offer may come to an end by revocation, lapse
or rejection.

12. Lapse
1. An offer may lapse, and thus become incapable
of acceptance passage of time, death of one of
the parties

13. Rejection
1. An offeree who has rejected an offer cannot
subsequently accept it. Rejection may be
expressed or impared.
1.7

LAW OF CONTRACT
1.3 INTENTION TO CREATE LEGAL REATIONS

1. Intention to be bound is essential.

2. The intention to create legal relations
is an important essential element in
contract.
3. In cases oof social, family or other
domestic agreements, the question of
intention to create legal relations
depends on the inference to be drawn
from the circumstances of each case
and language used by the parties.
1.8

LAW OF CONTRACT
1.4 THE NATURE OF CONSIDERATION

1. Bare promise not binding. One must

show that the gave or promised to give
some advantage to the other in return
for that promise.
2. A voluntary promise in not binding.
3. Valuable consideration may be
something promised or something
done.

1.9

LAW OF CONTRACT
1.4 THE NATURE OF CONSIDERATION

1. The following govern consideration

1.
2.
3.
4.
5.
6.
7.

1.10

Must be real
Need not be adequate
Must move from the promise
Must not be past
Must not be illegal
Must not be vague.
Must be possible of performance