Professional and Legal Issues Contract Law From Wikipedia

Professional and Legal Issues Contract Law From Wikipedia, the free encyclopaedia

Contract Law • A contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation • It may have elements in writing, though contracts can be made orally • The remedy for breach of contract can be "damages" or compensation of money

Contract Law • A contract is a legally enforceable promise or undertaking that something will or will not occur. • The word promise can be used as a legal synonym for contract, although care is required as a promise may not have the full standing of a contract, as when it is an agreement without consideration. • Contract law varies greatly from one jurisdiction to another

Breach of Contract • In equity, the remedy can be “specific performance” of the contract or an “injunction”. • Both of these remedies award the party at loss the "benefit of the bargain" or expectation damages, which are greater than mere reliance damages, as in promissory estoppel. • Specific performance is an order of a court which requires a party to perform a specific act, usually what is stated in a contract. It is an alternative to the award of damages, and is classed as an equitable remedy • Expectation damages are damages recoverable from a breach of contract by the non-breaching party. It originates from an injured party's interest in realizing the value of the expectancy that was created by the promise of the other party.

Scots contract law • Scots contract law governs the rules of contract in Scotland. • Contract is created by “bilateral” agreement and should be distinguished from “unilateral” promise, the latter being recognised as a distinct and enforceable species of obligation in Scots Law. • The English requirement for consideration does not apply in Scotland, so it is possible to have a gratuitous contract, i. e. a contract where only one of the parties comes under any duties to the other (e. g. a contract to perform services for no consideration)

Scots contract law • A contract is an agreement between two or more parties which creates or intends to create legally binding obligations between the parties to it. • Note however that not all declarations made by a person to another person will amount to a promise that is enforceable under Scots law. • In particular, a declaration of intention, a testamentary provision and an offer will not be a promise.

Scots contract law • At common law, a promise had to be proved by writ or oath. However, after the introduction of the Requirements of Writing (Scotland) Act 1995, a promise need only be evidenced in writing. • A Contract is formed by the acceptance of an offer; an offer can be constituted by responding to an invitation to treat. • Variation of the original offer counts as counter-offer. • A leading piece of legislation in Scots Contract Law is the Contract (Scotland) Act 1997. This act includes damages for breach of contract of sale.

Typical Contract Contenets • Contracts should be project specific and reflect the agreement between the parties. • Every contract should have: – Offer; – Acceptance; – Consideration (although note the position in relation to Scotland below); and – Intention to create legal relations.

Acceptance • 'Acceptance' of an offer occurs when there is an unqualified acceptance of all the offered terms. • However, this is unusual and there will normally be a period of negotiation. • New terms and conditions introduced through negotiation in effect amount to a series of counter offers to the original offer, cancelling the terms of the original offer.