BU1112 Final: Exam prep - Lecture notes including some cases
BU1112
Business Law and Ethics
Module 3
Contract Law
Is M Ageeet a Efoeale Cotat?
Administrative Matters
Tutorials
Assignment
Class test
What we covered last week
Three meanings of Common Law
Role and function of equity
Role and function of Australian courts
Operation of the Doctrine of Precedent
Role of Statute in the Common Law system
Alternative Dispute Resolution
Module Outline
1. Introduction to contracts.
2. Types of contracts.
3. Elements of contract:
a. Offer;
b. Acceptance;
c. Consideration;
d. Intention to be bound;
e. Mutuality;
f. Capacity;
g. Legality.
find more resources at oneclass.com
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Contract
An agreement which the law will enforce.
Economic Significance of Contract Law
Contract law is important because it affects almost all commercial dealings: all sale contracts; all
employment contracts every service agreement every lease almost every transfer of property etc
Different Legal Approaches to Contract
In common law countries – contract law mainly consists of principles developed by the courts + some
equitable rules + some statute.
In civil law countries – contract law is codified and the role of the court is limited.
Philosophy of Contract Law
In common law countries the doiat philosoph is lassial otat theo o ill theo. It
assumes that contracts arise from the exercise of free will and therefore should be enforced.
Governments and courts should not interfere – they just provide the framework of the law.This
theory is still accepted - but with modifications to protect the weaker parties in the contract.
Requirements for Validity
In most cases – contracts do not have to be written. They can be written, they can be partly written
and partly oral, they can be wholly oral or they can be implied from the way the parties behave).
THE SALE OF GOODS ACT 1896 (QLD)
FORMALITIES OF THE CONTRACT
6. Contract of sale, how made. Subject to the provisions of this Act and of any Statute in that
behalf, a contract of sale may be made in writing (either with or without seal), or by word of
mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of
the parties:
This section does not affect the law relating to corporations.
Question:
You contract with a supplier for the purchase and delivery of goods for $10,000 – the goods to be
delivered to your warehouse in Townsville by 6th June.
Does the contract have to be in writing?
Would it be wise to have it in writing?
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find more resources at oneclass.com
Types of Contract
1. CONTRACTS UNDER SEAL.
2. SIMPLE CONTRACTS.
Unilateral Contracts
Those under which only one party is OBLIGED to do anything.
Errington v Errington (1952) 1KB 290 Facts: Errington brought a house in which he intended his son
and daughter in law would live. He paid deposits, the home was in his name but he told his son and
daughter in law that, if they paid the mortgage, the house would be theirs. The couple lived in the
lived in the house and made all of the mortgage payments. In 1945 Errington died and left all his
property (including the house) to his wife. The son and daughter in law subsequently separated and
the so left the hoe ad et to lie ith his othe. The othe, Eigtos ido, the sued
the daughter in law for possession of the house.
Held: He atio failed. He deeased husads poise to tasfe the house to the ouple if the
paid off the mortgage had been converted into a binding unilateral contract by their assumption of
responsibility for the mortgage payments (an obligation that they had not been required to assume).
Therefore, because those payments were still continuing, the daughter in law was entitled to remain
in possession.
Bilateral Contracts
Those under which BOTH parties are OBLIGED to do something.
Multilateral Contracts
Contracts involving more than two parties (eg, partnership agreements).
Elements of a Contract
1. Offer
2. Acceptance
3. Consideration
4. Intention to be bound
5. Mutuality
6. Capacity
7. Legality
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Contract law (cid:862)is m(cid:455) ag(cid:396)ee(cid:373)e(cid:374)t a(cid:374) e(cid:374)fo(cid:396)(cid:272)ea(cid:271)le co(cid:374)t(cid:396)a(cid:272)t? (cid:863) Role of statute in the common law system. Introduction to contracts: types of contracts, elements of contract, offer, acceptance, consideration; Contract law is important because it affects almost all commercial dealings: all sale contracts; all employment contracts every service agreement every lease almost every transfer of property etc. In common law countries contract law mainly consists of principles developed by the courts + some equitable rules + some statute. In civil law countries contract law is codified and the role of the court is limited. In common law countries the do(cid:373)i(cid:374)a(cid:374)t philosoph(cid:455) is (cid:862)(cid:272)lassi(cid:272)al (cid:272)o(cid:374)t(cid:396)a(cid:272)t theo(cid:396)(cid:455)(cid:863) o(cid:396) (cid:862)(cid:449)ill theo(cid:396)(cid:455)(cid:863). It assumes that contracts arise from the exercise of free will and therefore should be enforced. Governments and courts should not interfere they just provide the framework of the law. this theory is still accepted - but with modifications to protect the weaker parties in the contract.
