We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byScott Firman
Modified about 1 year ago
Prepared by Douglas Peterson, University of Alberta 10-1 Part 3 – The Law of Contract Chapter 10 The Requirements of Form and Writing
© 2006 McGraw-Hill Ryerson Limited 10-2 Overview Formal and Simple Contracts The Statute of Frauds Executors and Administrators Guarantees Contracts concerning an interest in land
© 2006 McGraw-Hill Ryerson Limited 10-3 Overview Requirements for the Written Memo Parol evidence Condition precedent Implied terms Collateral agreements Subsequent agreements Reduction to Writing Sale of Goods Act
© 2006 McGraw-Hill Ryerson Limited 10-4 Formal and Simple Contracts 2 general classes of contracts 1. Formal (derives its validity from its form) Not common 2. Informal (simple) (most common) Implied Oral written
© 2006 McGraw-Hill Ryerson Limited 10-5 Formal and Simple Contracts Power of Attorney A legal document usually signed under seal in which a person appoints another to act as his or her attorney to carry out the contractual or legal acts specified in the document. Example of a formal contract
© 2006 McGraw-Hill Ryerson Limited 10-6 Statute of Frauds Characteristics Introduced from the UK into Canada as a colony Still exists in some provinces, in others it has been repealed but incorporated into other statutes Certain contracts if not in writing are not enforceable Still valid and existing contracts for other purposes (not void or prohibited)
© 2006 McGraw-Hill Ryerson Limited 10-7 Types of Contracts Following contracts covered by the Statute of Frauds 1. Contracts by Executors and Administrators 2. Guarantees 3. Assumed liability for a tort 4. Contracts concerning an interest in land
© 2006 McGraw-Hill Ryerson Limited 10-8 Contracts by Executors/Administrators Executor or administrator of an estate is not generally liable for the debts of the testator (the estate) Can personally assume such debts but only if such contract is in writing
© 2006 McGraw-Hill Ryerson Limited 10-9 Guarantees Guarantee A collateral promise (in writing) to answer or the debt of another (the principal debtor) if the debtor should default in payment 3 parties in a guarantee Creditor Debtor (Primary liability) Guarantor (Secondary liability)
© 2006 McGraw-Hill Ryerson Limited Guarantees Consideration required to enforce the guarantee Alberta (Alberta Guarantees Acknowledgment Act) the guarantee must also be notarized Must distinguish between guarantees and indemnities Guarantees must be in writing Indemnities need not be in writing
© 2006 McGraw-Hill Ryerson Limited Assumed Liability: Tort Concept Any agreement whereby a third party promises to answer for the tort of another Must be in writing Signed by the party to be charged
© 2006 McGraw-Hill Ryerson Limited Land Contracts Land Contracts Contracts concerning an interest in land Vague concept Includes sale of land or lease of land Does not include those things ancillary to the land or remote (repairs, renovations, etc) Does not include room and board contracts
© 2006 McGraw-Hill Ryerson Limited Land Contracts Part Performance (equitable doctrine) A doctrine that permits the courts to enforce an unwritten contract concerning land where certain conditions have been met Requirements 1. Acts performed relate to land in question 2. Lack of a written memo would perpetuate a fraud and a hardship on the person 3. Agreement must relate to an interest in land 4. Agreement must be valid and enforceable apart from the requirement of writing and verbal evidence must be available to establish the existence of the agreement
© 2006 McGraw-Hill Ryerson Limited Requirements for a Written Memorandum Requirements Need not be in a formal document Need all terms of contract (3 P’s: parties, property, price) Can be an exchange of letters – 2 letters together can constitute an agreement in writing Must be signed by the party against whom it is being enforced
© 2006 McGraw-Hill Ryerson Limited Parol Evidence Rule Rule A rule that prevents a party from introducing evidence that would add to or contradict terms of a contract Limits the kinds of evidence that may be used to prove terms of a contract Cannot contradict a clear unambiguous contract
© 2006 McGraw-Hill Ryerson Limited Exceptions to the Parol Evidence Rule Condition Precedent A condition that must be satisfied before a contract may come into effect Contract is in a state of suspension until the condition is met, not met, or waived by the party who inserted it If the condition is not met then the contract is cancelled
© 2006 McGraw-Hill Ryerson Limited Exceptions to the Parol Evidence Rule Doctrine of Implied Term The insertion by the court of a standard or customary term omitted by the parties when the contract was prepared Implied terms cannot conflict with express terms Usually implied in order to implement the agreement
© 2006 McGraw-Hill Ryerson Limited Exceptions to the Parol Evidence Rule Collateral Agreement An agreement that has its own consideration, but supports another agreement Could alter or add to the main agreement Courts usually don’t allow unless one can prove it exists as a separate and complete agreement with its own consideration
© 2006 McGraw-Hill Ryerson Limited Exceptions to the Parol Evidence rule Common Factor All exceptions to the parol evidence rule; the modifying term precedes, or is concurrent with the formation of the written agreement Subsequent Agreement An agreement made after a written agreement that alters or cancels the written agreement
© 2006 McGraw-Hill Ryerson Limited Reduction to Writing Negotiations Issue of when a contract agreed to orally becomes enforceable if it is never reduced to writing Issue of interim enforceability between time of oral agreement and being put into writing
© 2006 McGraw-Hill Ryerson Limited Sale of Goods Act Writing Requirement Certain transactions over a certain value if not in writing are unenforceable Methods of enforcement (without written requirement) Payment of a deposit Acceptance of delivery of part of the goods Giving of something “in earnest” (such as a trade in)
© 2006 McGraw-Hill Ryerson Limited Summary Formal or Informal Contracts Most contracts are informal May be in writing, oral or implied Statute of Frauds Certain type of contracts must be in writing or they are unenforceable Parol Evidence Rule Several exceptions exist
Legal Purpose and Proper Form. Agreements that involve contracting for an illegal act generally are void and unenforceable.
Washington Real Estate Fundamentals Lesson 9: Purchase and Sale Agreements © 2011 Rockwell Publishing.
Copyright © 2004 McGraw-Hill Ryerson Limited 1 PART 5 – SPECIAL CONTRACTUAL RELATIONSHIPS Chapter 22 – The Sale of Goods Prepared by Douglas H. Peterson,
1. Parties have contractual capacity 2. Contract has legal purpose 3. Offer 4. Acceptance 5. Consideration 6. Statute of Frauds compliance.
Copyright © 2004 McGraw-Hill Ryerson Limited 1 PART 3 – THE LAW OF CONTRACTS Chapter 10 – Failure to Create an Enforceable Contract Prepared by Douglas.
Copyright © 2009 by Pearson Prentice Hall. All rights reserved. PowerPoint Slides to Accompany CONTEMPORARY BUSINESS AND ONLINE COMMERCE LAW 6 th Edition.
1 CHAPTER CHAPTER 10 2 What You Will Learn: Why It Is Important: How to explain the purpose of the Statute of Frauds How to explain the legal.
SALE OF GOODS The law relating to the sale of movable goods is contained in the Sale of Goods Act (Act 111 of 1930). Buyer, Seller and Goods: Buyer; Seller;
Mark Radford, Partner, Colin Biggers & Paisley, Australia Conflicts of interest faced by reinsurance brokers and duties owed by producing and placing brokers.
PERFORMANCE OF CONTRACTS A contract creates legal obligations,"Performance of a contract" means the carrying out of these obligations. Each party must.
Contract Law Basics A Practical Approach to Contract Review and Negotiations.
SALE OF GOODS – ARTICLE 2 OF THE UNIFORM COMMERCIAL CODE Zara Law Offices 111 John Street Suite 510 New York, NY Tel: Fax:
DISCHARGE OF CONTRACT HOW A CONTRACT COMES TO AN END A party who is subject to the obligations of a contract may be discharged from those obligations in.
Basics of U.S. Contract Law David J. Mack Dorsey & Whitney LLP 51 West 52nd Street New York, New York P: F:
Part 2 ; Company Law 1 Company law The general theory Partnership company Joint stock company.
SALES & OTHER CONTRACTUAL SITUATIONS Mr. Valanzano Business Law.
Legal Issues E-Commerce Thomas Schwarz, S.J
COMMERCIAL LAW /2013 ACADEMIC YEAR HIRE PURCHASE UGBS, 29 TH OCT 2012 COMMERCIAL LAW /2013 ACADEMIC YEAR HIRE PURCHASE UGBS, 29 TH OCT 2012.
Reaching Agreement: The Process of Contract Formation C. LIMITING THE OFFERORS POWER TO REVOKE: THE EFFECT OF PRE-ACCEPTANCE RELIANCE 1.Under the common.
17-1 McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Sale of Goods Act, 1930 A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer.
FAMILY LAW ACT Child Support and Spousal Support Laurence S. Klass.
Contracts and Warranties. Why Do I Need To Know This? 1.Because you will sign thousands of contracts in your lifetime. 2.Because you will make offers.
REMEDIES FOR BREACH OF CONTRACT A party may apply to the court for a number of remedies when the other party is in breach of party contract (A) Damages.
The Fairmont Dallas, Dallas, TX NCMA 3rd Annual Commercial Contract Management Conference International Contract ManagementBetter Business by Crossing.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
CHAPTER 2 The sources of contractual terms. Introduction This section concerns the contract of employment and how it comes into existence. It is important.
Company Law. What is a company? A Company is a voluntary association of persons formed for the purpose of doing business, having a distinct name and limited.
Limited Partnerships Chapter 5. Limited Partnerships Designed to eliminate the risk of losing personal assets to business debts and/or judgments. Takes.
Washington Real Estate Practices Lesson 1: Real Estate Agency © 2013 Rockwell Publishing.
© 2016 SlidePlayer.com Inc. All rights reserved.