1. Contract Law
A contract is a legally binding agreement that is enforceable by law.
Example: a contract of employment, a contract to buy/build a house.
The law of contract is a set of rules for proving when a contract exists and when it is finished (terminated)

2. Elements of a Contract Consideration Intention Consent Capacity
Agreement
Offer & Acceptance
Consideration
Intention
Consent
Capacity
Legality of Form
Legality of Purpose

3. Elements of a Valid Contract
Offer – every contract must contain an offer to make a contract.
An offer is a proposal that is legally binding if it is accepted unconditionally by the other party.
An offer may be:
Verbal
Written or
Implied by conduct
An offer ceases to be an offer if it is
Rejected – not accepted
Revoked – withdrawn
Not accepted in time
Changes are sought to the conditions of the contract – before an agreement is reached. This becomes a counter offer, different from the original offer.
If pressure/duress is put on one party.

4. Invitation to treat
This is not an offer. It is an offer to the consumer to make an offer.
In Irish law, an advertisement, a price tag, a shop display of goods on a shelf are not legal offers - they are invitations to treat.
They are an indication that the seller of an item would like to receive an offer for it. They are a guide to the price the seller is willing to consider and may possibly accept if offered.
The customer is the one who asks to buy the goods at the price shown. He makes the offer. The seller can accept or reject this offer.
An hi-fi system mistakenly priced at €199 instead of €399. If a customer sees this & they insists on buying them, the shop is within its legal rights to refuse to accept an offer from customer to buy displayed goods at wrong price.

5. 2. Acceptance
Every contract must contain a unqualified acceptance of the offer, which means accepting the original offer as it stands.( no conditions attached). The person must accept all the terms of the deal as set out and cannot change them.
If a change is made it is called a “counter offer”. Making a counter offer is an automatic rejection of the offer and the end of the contract.
Acceptance of an offer can be communicated
Verbally
In writing
By conduct.

6. 3. Consideration
This refers to the payment that one party gives the other as proof of the agreement.
Something of value must pass from one party to another, ie) money.
It must be real and of value.

7. 4. Intention to Contract
The parties in a contract must have intended to create a legally binding contract.
They fully understand at the time they make the agreement that it is legally binding and if they break their side they could end up in court.
All business agreements whether written/verbal are intended to be legally binding
All social agreements are not intended to be legally binding – you cannot sue a friend if she doesn’t turn up for lunch!

8. 5. Consent to contract
This means that each party must give genuine agreement of their own free will to the making of a contract.
One party must not be forced into a contract.
Consent to enter a legally binding contract may not exist if
A person is pressurised against their free will
A person enters a contract as a result of deliberate misrepresentation /dishonesty of others.

9. 6. Capacity to contract
This means that people entering into a contract must have the legal ability and power to do so. One must be over 18 yrs of age and of sound mind.
Companies must act within their rights as set out in the Memorandum of Association.
All people and businesses have the capacity to make contracts except the following:
People under 18 years old
People who are drunk or insane or of unsound mind
Company directors when they do something beyond their authority, as set out in the Memorandum of Association. This is known as directors acting ‘ultra virus’.
Because these people do not have capacity to contract any agreements they make are not legal contracts

10. 7.Legality of Form
This refers to the manner in which the contract is drawn up. Most contracts can be verbal, written or implied by conduct.
However some contracts must be in writing, such as loans, property sales or insurance policies, and employment contracts.

11. 8.Legality of Purpose
To be legally binding, a contract must have legal purpose and not break any laws.
It cannot involve committing a crime, defrauding the state of taxes, or unfair restraint of trade.

12. How can a contract be terminated
Termination of a contract means it can no longer be legally enforced.
Performance – occurs when the parties involved fulfil their obligation as agreed. Eg) A builds the house for B,B pays A the agreed amount.
Agreement – all the parties to the contract can terminate a contract, whether or not the purpose of the contract has been achieved. They agree to end it voluntarily. Eg) employment contracts can come to an end by either party giving the required notice.

13. 3. Frustration – a contract comes to an end if some unforeseen event occurs, such as death or bankruptcy of one party which makes it impossible to carry out the contract.
4. Breach of Contract – if one person breaks their part of the agreement/deal. If a person breaks a condition in the contract, it is terminated immediately.
A condition is a fundamental part of a contract. If a condition is broken the contract is broken.
A warranty is a term of a contract that is not essential and fundamental to it. If a warranty is broken the contract is not broken.
Example) if a football player misses a training session=breach of warranty, but if he misses an important match=breach of condition. The contract is terminated and his club can sue him.

14. Remedies for Breach of Contract
1. Sue for Damages – the judge can order the person who broke the contract to pay financial compensation to the innocent party to compensate for the loss suffered.
This remedy can help solve conflict where one party lost out financially as a result of the other party not carrying out their side to the deal.
A singer agrees to sing at a concert, Akin Promoter organises the event and pay singer €250,000 in advance, singer pulls out at last min, Promoter can bring her to court, Judge could order her to pay €400,000 back to promoter for money lost and inconvenience

15. 2. Specific performance – the judge can order the person who breaks the contract to carry out their side of the deal exactly as originally agreed in the contract.
This remedy will help solve a conflict over breach because the innocent person does not suffer at all as a result of breach. The judge orders the contract to be carried out in full as originally agreed.
In the concert example, the singer could be ordered by the judge to perform the concert at a later date.

16. 3. Rescind the contract – the judge could order that the contract is cancelled. He sets the contract aside and returns the two parties to exactly the same position they were in before they entered the contract.
A judge would rescind the contract in the event of frustration.
This remedy can help solve conflict over breach b/c the innocent person is returned to the situation he was in before he entered the contract.
In the concert example, if the singer could not perform b/c illness/death, the judge might order that she repay Akin promoters the €250,000 advance and then the contract would be set aside.