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PROFESSIONAL PRACTICE I [QSD 289

]

Mohammad Nasharudine Shuib
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INTRODUCTION OFFER ACCEPTANCE CONSIDERATION INTENTION TO CREATE LEGAL RELATIONS

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& thus may assist in avoiding possible disputes from differing interpretations & constructions.’ 6 .‘a clear understanding of the contract formation process will lead to compilation of contract documents which are consistent & free ambiguity. even pitfalls.

The Learned English Authority On Law of Contract has defined a contract as:- A legally binding agreement between two or more parties.DEFINITION Sir William Anson. 7 . by which rights are acquired by one or more to acts or forbearances on the part of the other or others.

CONTRACT FORMATION 1. ACCEPTANCE 3. INTENTION 2. CONSIDERATION 8 . OFFER 4.

CLIENT/EMPLOYER DESIGN TEAM Architect C&S Engineer M&E Engineer QS Land Surveyor BUILDING TEAM Main Contractor Domestic SubContractor Nominated SubContractor Nominated Supplier 9 .

CLIENT/EMPLOYER MOA DESIGN TEAM CONTRACT BUILDING TEAM 10 .

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even the whole world: 13 .it may be made to any number of people.DEFINITION An offer must be made to someone .

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DEFINITION A vague term of a contract may spoil it because it is not certain what the acceptor is actually accepting: 16 .

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DEFINITION A valuable consideration may consist either in some right interest profit or benefit accruing to one party or some observance detriment loss of responsibility given suffered or undertaken by the other . Consideration is in two lots with each party suffering both a benefit and a detriment each giving and receiving and thereby creating the agreement. 18 .Curries v Misa.

Sometimes there may be a considerable time between the promise and the performance as in the sale of land in other cases the promise and performance may for both parties be simultaneous as in the sale and purchase of goods in a supermarket.DEFINITION Most consideration begins as a promise for a promise. 19 . At that stage the consideration is said to be executory. As each party performs his or her part of the consideration it is said to be executed.

DEFINITION Unilateral contracts are unusual in that instead of both the offer and the acceptance being promises and executory. 20 . the promise of the offer is executory consideration but the performance of the acceptance is executed.

e. as long as there is some consideration then the courts will not inquire as to whether the bargain is "fair". i.RULES OF CONSIDERATION Provided consideration is real and genuine then it need not be adequate. However although consideration may be small it must not be a sham ( £1 for a Rolls Royce is a valid bargain if the parties agree): 21 .

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DEFINITION Agreements are either domestic and social or commercial and business. 23 .

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DEFINITION Agreements are either domestic and social or commercial and business. 25 .