CONTRACTS Overview

BLAW 300 – FB

Legality / Contrary to
Public Policy

CONTRACT

Exercising Free Will Offer Acceptance Consideration Intention

• Duress Certainty
• Undue influence communication exceptions presumption at law of Terms
• Capacity
• Vagueness
• Mistake
• Unconscionability
• Misrepresentation

Law of Contract
Failure Create a Legal Relationship
FLAW EFECT ON AGREEMENT ADDITI ONAL RIGHT
OF INJURED PARTY

Mistake Void / Voidable

Innocent Voidable
Misrepresentation

AGREEMENT Fraudulent Voidable Tort of Deceit

Misrepresentation

Undue Voidable
Influence
Duress Voidable
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 CONTRACTS Overview
BLAW 300 – FB

Law of Contract (cont.)

A. Discharge by Means other than Performance
METHOD OF DISCHARGE NATURE

By agreement before both parties have fully performed

As a right option to terminate as term in the

agreement

Doctrine of Frustration performance rendered impossible by an

OBLIGATION external event (not precipitated by either
party)

Operation of Law bankruptcy

limitations legislation

Condition Precedent express or implied

Condition Subsequent express or implied

B. Breach of Contract
NATURE OF BREACH RIGHTS OF INJURED PARTY EXCEPTIONS

Express Repudiation released from future performance where party has substantially
performed contract – only
entitled to damages for loss

Implied Repudiation damages for loss suffered

Option to wait until date fixed

for performance

Fundamental Breach entitled to treat the contract as injured party must not continue
at an end; exemption clauses will to accept benefits under the
not protect the party in breach contract after fundamental breach
discovered

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 CONTRACTS Overview
BLAW 300 – FB

Law of Contract (cont.)

C. Remedies for Breach
REMEDY EXTENT OF REMEDY

Damages - to compensate for loss by money payment

- to place party in the same position as if
agreement fulfilled

Liquidated - estimate of loss in the event of future breach

Damages - provided for in the agreement
- cannot be punitive
BREACH
OF Specific - normally only available in land transactions or
CONTRACT Performance where there is a uniqueness to the subject matter
of the agreement
- only available if money compensation is
inadequate

Injunction - discretionary relief

- used to enforce negative convenants in
agreements
- to prevent continuing or impending injury

Quantum Meruit - where goods or services are requested

- quasi-contract remedy
- reasonable price/damages

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