Law Notes
LAW OF CONTRACT NOTES FOR DIPLOMA STUDENTS
The Following are for the Lecture 1.
Agreement: is an offer made by one person and an acceptance of that offer by a person to whom the offer is made. The offer and acceptance change their characters and become promises.
Refer to Section 2 (1) (e) of the Act.
Contract: must be an agreement. The agreement must be enforceable by law.
Essential Ingredients:
1.
2.
3.
4.
Free Consent
Competency or Capacity
Consideration
Creates Legal relations
Proposal or Offer
Refer to Section 2(1) (a) of the Act.
Proposal means a signification from one person to another of his willingness to do or abstain from doing anything with a view to obtain the assent of that other to such act or abstinence. Characteristics:
1. Must be made willingly: Proposer must be willing to be bound by the terms stated; 2. Terms must be clear and certain. Refer to Section 29 of the Act
Case Law: Alfi E.A. Ltd v. Themi Industries and Distributors Agency Ltd. (CAT
Dsm Civil Appeal 28 of 1984) and Nitin Coffee Estates Ltd: In both cases the
“Price” was not stateed hence agreement becomes “Uncertain”;
3. Final Expression: Terms must be firm and final. Changing the terms in statements cannot be regarded as a proposal.
Contracts under various situations
1. Unilateral Contracts: These are one sided contracts. For example Advertisements.
Case Law: Carlill v. Carbolic Smoke Ball Co. (1892) 2Q.B.484. is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms. It is notable for its curious subject matter and how the influential judges (particularly Lindley LJ and Bowen LJ) developed the law in inventive ways. Carlill is frequently discussed as an introductory contract case, and may often be the first legal case a law student studies.
The case concerned a flu remedy
The Following are for the Lecture 1.
Agreement: is an offer made by one person and an acceptance of that offer by a person to whom the offer is made. The offer and acceptance change their characters and become promises.
Refer to Section 2 (1) (e) of the Act.
Contract: must be an agreement. The agreement must be enforceable by law.
Essential Ingredients:
1.
2.
3.
4.
Free Consent
Competency or Capacity
Consideration
Creates Legal relations
Proposal or Offer
Refer to Section 2(1) (a) of the Act.
Proposal means a signification from one person to another of his willingness to do or abstain from doing anything with a view to obtain the assent of that other to such act or abstinence. Characteristics:
1. Must be made willingly: Proposer must be willing to be bound by the terms stated; 2. Terms must be clear and certain. Refer to Section 29 of the Act
Case Law: Alfi E.A. Ltd v. Themi Industries and Distributors Agency Ltd. (CAT
Dsm Civil Appeal 28 of 1984) and Nitin Coffee Estates Ltd: In both cases the
“Price” was not stateed hence agreement becomes “Uncertain”;
3. Final Expression: Terms must be firm and final. Changing the terms in statements cannot be regarded as a proposal.
Contracts under various situations
1. Unilateral Contracts: These are one sided contracts. For example Advertisements.
Case Law: Carlill v. Carbolic Smoke Ball Co. (1892) 2Q.B.484. is an English contract law decision by the Court of Appeal, which held an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performed its terms. It is notable for its curious subject matter and how the influential judges (particularly Lindley LJ and Bowen LJ) developed the law in inventive ways. Carlill is frequently discussed as an introductory contract case, and may often be the first legal case a law student studies.
The case concerned a flu remedy