Contracts)Notes) Introduction*to*Contract*Law*...*2*
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1 Cntracts)Ntes) Cntents) IntrductintCntractLaw...2 Agreement...9 Offer...4 WhatisNtanOffer?...5 CertaintyandCmpleteness...11 SavingCntracts...13 CnditinalCntracts...14 IntentintCreateLegalRelatins...15 Cnsideratin...18 Estppel...22 Privity...24 Capacity...27 PreKCntractualStatements...32 TermsfaCntract...38 CnstructinfTerms...41 DischargefCntract...44 DischargebyPerfrmance...44 DischargebyAgreement...47 DischargebyBreach/Terminatin...49 DischargebyFrustratin...51
2 1. FrmatinfCntract i. Agreementbetweenparties ii. IntentintCreateLegalRelatins iii. Cnsideratin Agreement(fferandacceptance) Certainty Intentintcreatelegalrelatins Cnsideratinandestppels Privity Capacity 2. Termsfcntract Expressterms Incrpratedterms Impliedterms Cnstructinfterms 3. Dischargefcntract Bybreach/repudiatin Byagreement Byperfrmance Byfrustratin OVERVIEW- Intrductin-t-Cntract-Law- Law Setflegalrulesenfrcedbysciety Dynamic cnstantlychangingtreflectsciety sneedsandattitudes Classificatin Origin/idelgy Civillaw Cmmnlaw Functin Prcedural(hwcnducted)vs.Rightsandbligatins(substantive) Jurisdictin Civil Criminal Cntractlaw Prvidesfrcreatin,perfrmanceandterminatinfvluntarydutiesbylegalactrs Cncernedwithvluntarybligatins(assumedbypartiesprivytcntract) Othertypeisimpsedbligatin(trts) 3Functins Specifywhichagreementsarelegallybinding Definerightsandduties Cnsequencesfbreachedcntract Cntentsfcntract
3 Cnditins Warranties Intermediateterms Duratin Rlefcurts Cmplywithsciallydesiredbehaviurs Machinerytsettledisputes SurcesfCntractLaw Precedent Generalprinciplesextractedandsynthesisedfrmcases AustralianandEnglishcases Statute Increasinginfluence TradePracticesAct,SalefGdsAct,CnsumerCreditCde Treaty Bilateral(FTA) MultiKlateraltreaties(e.g.UNCnventinfrInternatinalSale=ViennaCnventin) Dmestic/Internatinal Differingrequirementsineachstate/territry Internatinalrelynprivateinternatinalrules Differenttypesfcntract Generalcntractregulatinsapplytall Specificcntractrules Assumptins Negtiatinprirtagreement Freedmfcntract Equalbargainingpwer TensinsinCntractLaw Certainty vs. Flexibility Subjectiveintent vs. Objectiveintent Natinal vs. Internatinal WhatisaCntract? Acntractisaprmiserasetfprmisesfrthebreachfwhichthelawgivesaremedy rtheperfrmancefwhichthelawrecgnisesasaduty Legallybinding agreement vs. cntract Curtwillprvideremedyfrbreach Circumstancestdenyremedy Lackflegalcapacity Lackfprivity Illegalrvidcntract Lackfgenuinecnsent Uncnscinablecntract Failuretcmplywithfrmalities BasicideaandClassificatinfCntracts Prmise tundertakebligatin Unilateral(neprmisr),bilateral(2prmisrs)
4 Parties newhprmises,netwhmprmisemade Bargain smethingfvalue(cnsideratin)givenup Subjectmatterfcntract Frmfcntract Cntractunderseal(deed) Requirements Writing Signedbypartytbebund(witnessed) Deliveredttherparty Simplecntract Generallynfrmalities Enfrceabilitydependsnexistencef cnsideratin (thepricepaid) Statutryrequirements Smemustbeinwriting ElementstfrmaCntract Agreementbetweentheparties Offer Acceptance Intentintcreatelegalrelatins Cnsideratin CntractCntinuum FrmatinIssues PerfrmanceIssues BreachIssues Negtiatins Cntract CntractualTerms? Cntract Remedies perfrmed/discharged? KeyIssues Validcntract? Frmatin Whatarethecntractualtermsandwhatdtheymean? Interpretatinandcnstructin Whendesthecntractcmetanend? Perfrmance/dischargefcntractualbligatins Offer- Elements Expressinbyneparty(fferr) Ttherparty(fferee) Ofawillingnesstbelegallybundncertainterms Iftherpartypreparedtacceptthseterms(canacceptrreject) Canbemadetnepersn,classrwrldatlarge(Carblic)Smke)Ball)C.) Offermustbecmmunicatedtfferee Offernteffectiveuntilbrughttattentinfpersntwhmitisdirected Offermustbemadebyfferrrauthrisedagent
5 Carlill)v.)Carblic)Smke)Ball)C. Offertwrldatlarge Offerf 100rewardifcntractinfluenzaafterusingCSBindirectedmanner Carlill Cmpanycntractuallybund CSBC Prmisentmadetanyneinparticular Nntificatinfacceptance Nintentintbelegallybund Curtheld 1000depsitedinbankshwsCSBCserius OfferacceptedbyCarlill sfllwingfthedirectivesfthecsb What-is-Nt-an-Offer?- NB:themrespecifictheffer,themrelikelyitistbeacntract MerePuff Wildpraise,extremeexaggeratinfradvertisingpurpses Advertisementntintendedtbetakenseriusly E.g.csmetics,claimsf bestinthewrld etc. SupplyfInfrmatin Prvisinfinfrmatin/clarificatin Harvey)v.)Facey PrpertycalledBumperHallPen(BHP) Buyer:telegraph1 willyusellusbhpfrlwestcashprice? Owner:telegraph2 lwestcashpriceis 900 Buyer:telegraph3 weagreetbuyfr 900 Curt:telegraph2ntanffer,merelyinfrmatin Culdhaverderedsale(calledspecificperfrmance) InvitatintTreat(Negtiate) Offertreceiveffers Hwwillstatementberegardedbyreasnablepersn? E.g.advertisement,catalgues,brchures,circulars,pricelists,gdsinshpwindw/shelf, prspectusetc. Partridge)v.)Crittendn)[1968])1)WLR)1204 Advertisements Pplacedadinperidical bumblefinchccks25seach Onepersnreadandsentin25s Pfilledrder Pchargedwith fferingfrsale bird,vilatedprtectinfbirdsact Curtheld Invitatinttreatandntanffer ntguiltyffferingfrsale Onpublicplicygrundsitisillgicalthavemultiplecntractsfreach gdnsale ffermadebycustmer ObjectiveApprach Carlill)v)Carblic)Smke)Ball)C. Ordinarymemberfpublicwuldunderstand
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