Contract

Contract

1. Definition

   • A contract is a set of promises in the form of an agreement between two parties who agree to give or do something in return for the promise.
   • An agreement on specific terms between two parties in exchange for a valuable benefit know as consideration. Such an agreement is legally binding and enforceable by law.
   • An agreement between two or more parties that is legally binding.

2. Elements of contract

3. Discharging of contract

4. Purpose of a contract

   • To facilitate planning of projects
   • To establish commercial responsibilities and obligations
   • To allocate business risks in advance
   • To provide remedies if things go wrong (e.g. in the case of building defects)

5. Vitiating factor

   • Incapacity
     • Minors
     • Mentally unsound
     • Intoxicated person
   • Illegality
   • Duress or Undue Influence
   • Misrepresentation
     • Fraudulent
       • A false representation that is made knowingly, without belief in its truth and recklessly
     • Negligent
       • Negligent misrepresentation is carelessly made while having no reasonable basis to believe it is true or false
     • Innocent
       • Innocent misrepresentation is made when the representor has reasonable grounds to believe it is ture
   • Mistake