Effects of Breach of Contract

Effects of a Breach of Contract There are various types of contract with in the world of law such as civil law which deals with relations between individual citizens where as private law focuses on the relations between ordinary people on a day to day basis, both types of law include the law of contract. A contract is an agreement that is legally enforceable and therefore can be settled within a court of law, however how can we distinguish between a contract and any other form of non-legally enforced statement. If I promised to wash someone’s car yet I don’t in fact wash the car can I be held to a contract? In this case I can not simply because a promise is not a contract although there is no rule stating that all contracts must be in writing in fact a contract can very easily be done verbally or by action of which are known as parol or simple contracts. A statement is only a statement when it holds all four elements these being 1.Offer 2. Acceptance 3.Intention to create legal relations 4. Consideration. Within a contract there are also what are known as clauses which simply express what both parties to the contract have agreed to. An example of a clause would be a car dealer selling his old car and we’d agreed on the price of the car in the process the car dealer says he will fill the car with petrol and I agree to only buy the car as long as there is no more than 15,000 miles on the dial and as long as the car had not been involved in any accidents. When I receive the car the tank is empty however that statement was a representation rather than a term as it did not hold a great deal of importance, however I find out that in fact the car had been involved in a car crash and had more than 15,000 on the dial and therefore the car dealer has breached the contract, therefore legal action can be taken. It is key to note the four tests that are carried out to figure out whether something is a term or representation these are 1. The importance of the statement 2.