2What is law?It’s a set of rules and regulations governing relationship amongIndividualsBetween individualsTheir societyOne of the most important function of law in any society is to provide stability so that people can be sure of how to order their affairs.
3What is contract?It’s an agreement between 2 or more parties, to do or not to do from a particular thing in exchange for something of value.It can be written, using formal or informal terms, or verbal.* Terms of contract – “who, what, where, when, how of the agreement”define binding promises of each party to contract.
4It is a type of civil law that protects us against broken promises and tricksters
5Essentials of a valid contract Offer + Acceptance = AgreementIntention to Create Legal RelationsLawful considerationCapacity of parties—competencyFree and genuine consentLawful object
6Offer + Acceptance = Agreement Rules of a valid offer:Invitation to offer is not an offer.Offer must be communicatedSpecial terms must be communicated in a special mannerOffer should not contain a term the non- compliance of which would amount to acceptance.Rules of a valid acceptance:Mental acceptance is ineffectual.It must given within a reasonable time.It must be expressed in the prescribed manner orin some usual manner.It must succeed the offer
7Intention to Create Legal Relations Parties must have intended to enter into a legally binding agreement.Agreement between friends or family members are not intended to be legally binding unless the contract is one of the commercial type.Selling a car to friendsProvide loan for relation.
8Lawful consideration (The important of bargained exchange – “no consideration, no contract”) Both parties must receive something of value.a promise of doing something or getting something must be some advantages or benefit moving from one party to other.
9Capacity of parties—competency “Essential ingredient of a valid contract is that the contracting parties must be competent” --- Sec.10Age of majorityNot mentally ill (Not crazy)Not a prisoner…etc
10Free and genuine consent ‘Agreeing upon the same thing in the same sense’Consent is said to be free when it not caused by:coercionundue influencefraudmisrepresentation
11Lawful object The object of the agreement: The object of the agreement must be lawful.The object of the agreement:IllegalImmoralOpposed to public policy
12Case study 1: Engagement ring, a gift or a contract?
13In Pavlicic v. Vogtsberger, a couple was engaged In Pavlicic v. Vogtsberger, a couple was engaged. The man bought her house, two cars, and a diamond ring in anticipation of marriage. He also lent her $5,000 to buy her own business. The woman disappeared, only to resurface later having used the funds to buy a business in another city and marry another man. The court ordered all of the gifts, including the engagement ring that the man had given to her, to be given back to him. Pavlicic v. Vogtsberger, 136 A.2d 127, 130 (Penn. 1957).
14Case study 2 What remedy may have? Mai hires a woman to wax his legs, she waxes everything but his legs.Hiring her for a service is a simple type of contract.Her screwing up the service for whatever reason is a breach of contractWhat remedy may have?
15case study 3 The aggrieved party He can sue for damages, because fraud is a civil wrong and hence compensation is payable.