Assignment

17/07/2013

CLWM4000 Business and Corporations Law

Lecture Two Contract Law: Agreement, Intention to b e legally bound and consideration

Objectives
1. To understand the relevance of intentions to create legal relations 2. To understand what is an offer and acceptance 3. Explaining the rules for offer and acceptance 4. Explain the importance of consideration 5. Explain the rules for consideration 6. Explain the concept of promissory estoppel

Intention to create legal relations
Intention to create legal relations • The fact that parties have reached agreement does not necessarily mean that a contract has been formed. • There must be an intention to create legal relations!

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•Express Intention: where the parties expressly state their intention to create legal relations •Implied Intention: where through the nature of the relationship the intention is implied •Certain types of relationships would imply an intention to create legal relations, and other would imply no such intention

Intention to create legal relations

Intention to create legal relations
Non-commercial agreements: • Three types: Social agreements - ones made between friends or acquaintances; Domestic agreements - ones made between family members and relatives; and Voluntary agreements - where the parties may volunteer their services.

• With these agreements the presumption is that there is no intention to create legal relations.

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Intention to create legal relations
Commercial or business agreements: • In business and commercial agreements the courts assume that there is an intention to create legal contractual relations. • Discuss examples of commercial agreements in class.

Agreement
Is there agreement between the parties? • • Generally characterised by an ‘offer’ by one party and an ‘acceptance’ by another. Important in determining the time, the place and contents of the agreement.

Rules relating to offers
Rules as to offers
1.