Discussion Topic #3

Lecturer: Andrew Smith

Luis Damian Quijano

Topic 3: Law of Contract

The definition of a contract is a binding legal agreement between two or more person and parties.

This is enforceable by law; this means if one party do not fulfil the requirement as promise, the

other party can use civil court system to recover from damages or other remedies. Contracts

provide individuals and business to sell and transfer property, services and other rights. In class

we have learnt the elements of valid contracts, this include offer, acceptance, intention to create

legal relationship and consideration. We also discuss the parties to a contract these include an

offeror- this party makes the offer to enter a contract and the offeree- this party has the power to

accept the offer and create an agreement. When it comes to the offer, the willingness and

expression to the contract must be within terms made with the contract. This will allow the

offeree to accept the bounded terms. Whenever a party or individual wants to know weather and

offer is granted it must be clear and unequivocal. The offer must be in communication by the

offeror to the Offeree. This plays a key important role for the fact being if the offeree is unaware

of an offer they most likely no acceptance will occur. Therefore an example will be I am going

to sell my friend an apple laptop for five hundred dollars and my lecture come to me and gave

me five hundred dollars and say he wants to buy my apple laptop, there was no offer made to my

lecture so I will not accept that offer. When it comes to bilateral, the offer is made to a specific

person, on the other hand the unilateral address to a group of people or to the public. We also

discuss invitation to treat in which one party commence negotiations, which might or might not

lead to an offer. As we go along learn ways how contracts may be terminate this includes

revocation- an offer can revoked or withdraw by the offeror at any time before it has been

accept. Rejection- the offer may not be explicit whenever a counter offer is been made and offer

is terminated. Lapse- an offer may lapse by a certain time or due to death of the offeree or
offeror. When it comes to Acceptance of an offer it must be communicated by the offeree, be

express (oral or in writing) or implied from conduct, be made in response to an offer. Intention to

create legal relations refers when parties intent to enter a legal relationship and be legally bound

by it. Domestic and social agreement is when family members do not generally intend

agreements, made merely for their mutual convenience, to be legally enforce. When it comes to

held -the claimant should succeed since the parties’ demonstrated sufficient intention to be

legally bound. This is also more than a friendly agreement. Consideration represent either some

benefit to the person making a promise (the promisor) or some detriment to the person whom the

promise is made, they are rules when considering a contract. These include it must be lawful,

must be sufficient, but need not to be adequate. As we move on the topic law of contract, we

discuss terms and representation of contracts. We will define what is terms of the contract – are

promise which form a part of the contract, the breach of which will give rise to an action for

damages for breach of contract. The definition of representations –are statement, which are

capable of including a contract on facts, appear to have done so, which do not necessarily

become part of the contract itself. To determine whether a statement is a term or representation

an overall test is that there must be evidence of intention by one or both parties that there should

be contractual liability of the statement. Guidelines develop by the court whether statement is a

term or representation the party can show that statement was of importance example will be

negotiation were conducted, then the statement will be held to be a term. Lapse of time between

making of the statement and the final entering into the contract then more likely to be held

merely representation. Not contained in the contract, parties will more likely not agree and the

statements will be mere representation. Lastly, the most important guideline is the strength or

degree of knowledge possessed by one party to the contract. The source of terms includes
express terms and implied terms. When it comes to express terms is agreed between the parties

and been expressly stated into contract as its main terms and conditions. On the other hand,

implied terms are declared a part of the contract even the parties have not consciously include

them. The discussion as we continue with law I read about condition. This term is the most

important in the sense that a breach of it will have every significant consequences. An example

will be when booking hotel accommodation; dates and type of room are the most crucial

requirements. Breach of condition gives the injured party the rights to treat itself as free and

further contractual duties and claim compensation. Warranty is a term that can be broke without

highly important consequence, therefore a breach the innocent party can sue for damages but the

contract will not be terminate. Examples of these are more for minor terms such as when

purchasing refrigerator there is a warranty and if something happen to it your entitle to get a

refund or another item. When it comes to innominate terms these are terms that can be broken

either important or trivial consequence, depending on the nature of the breach. Exclusion clause

are terms which one party seek to limit financial claims against in an event of lose damage to the

other party or to exclude itself from legal liability altogether. Example will be when flying on

any airline the luggage claim same there responsible for damages inside the bag.
 Grading Criteria

Score Knowledge Understanding Writing Skills Application/Analysis

5 Comprehensive, in- Outstanding Excellent Grasps inner
depth and wide ability to grasp Mechanics, relationship of
ranging concepts and sentence concepts, Excellent
relate theory to structure, and use of a wide range
practice organization of supporting
material
4 Up to date and High level of Significant Demonstrates the
relevant ability to mechanics, ability to analyze
conceptualize structure and and synthesize,
essential ideas organization independent
and relate theory analysis, good use
to practice of a range of
supportive material
3 Relevant but not Some ability to Some Informed
comprehensive conceptualize grammatical commentary with
essential ideas lapses, uses some evidence of
and relate theory emotional genuine analysis;
to practice response in some supportive
lieu of relevant materials used
points
2 Limited superficial Limited ability to Poor grammar, Some observations,
knowledge/response draw out weak some supportive
concepts and communication evidence used
relate theory to
practice
1 Little Minimal Lack of clarity, Lacks evidence of
relevance/some awareness that poor critical analysis,
accuracy external presentation of poor use of
concepts exist thinking supportive evidence
Marks
Total points X5= %