contract
The law of
contract may be defined as that branch of law which deal with the agreement
which can be enforced through court of law ( it is the law which determines the
condition and circumstances in which promises made by the parties to a contract
will be legally binding on them it’s the rule that define the remedies that ate
available in a court of law ) it is remedies that are available in a court of
law to the aggrieved party against the party who fail to perform his part of
the contract and the condition under which the remedies are available
In business contract play a greater roal to
enforce the parties to perform the promise made by the one parties to another (where
the promise are made at one time and are performed at another time) it today business the contract giver security
and freedom to act to both party every business should know about contract
before they start and operate
The main object of the law of contract is to lay down the
legal rules relating to promises their
formation there performance and
enforceability Sir William anson
“ is
to ensure that what a man has been led to expect shall come to pass and that
what has been promised to him shall be performed “
The
nature of the law of contract
The law of contract dose not lay down the various rights and
obligations which the law will enforce it merely lays down the limiting
principal subject to which the parties may create any right and obligation for
themselves the law of contract give complete freedom of a contract to the
contracting parties in respect of creation of right and obligations
The law of contract deals with only those agreements which can be
enforced through court of law only those agreement or promises which create
legal obligation according to Salmound “ the law of contract is not the
whole law of agreement nor is it the whole law of obligations .It is the law of
those agreement which created obligation and those obligations which have their
source in agreement “ it excludes obligation which are not contractual
in nature and agreement which are social in nature promise made in social life
which may be morally binding but do not create legal obligations Example if
A promises B to attend the dinner at B house but fails to attend the promise of
A certainly does not create any legal obligation on the part of A and so dose
not allow B to sue A the law of contract applies only to those
contract which create obligation between the parties to the contract and not
against the whole world If a has right
to receive a sum of money from B the right to exercised only against B and not
against anyone else
the law of contract is the most important branch of
commercial law it is the foundation on which structure of modern business is
built
the law of contract is the basis for other branches of
commercial law for instance the enactment or laws relating to the sale of goods
negotiable instrument partnerships
insolvency
the law of contract apply not only to the mercantile
community but also to other common people every on of us enter into a number of
contracts everyday we are enter into a contract and we are all regulate d by
the same law of contract which regulates the activities of mercantile person
contract
according to Fredrick
Pollock “every agreement and promise enforceable at law is a contract “
sir john salmond
“ a
contract is an agreement created and defining obligation between the parties
“
every contract is an agreement but every agreement is not a
contract
agreement = offer +acceptance
the agreement must have two important requisites they are
(1) plurality of the party (2) free
consensus
kinds of obligation
every agreement creates a obligation impose upon a definite
person or person the necessity of doing or abstaining from doing a definite act
or acts it may create legal obligation or a social obligation
legal obligation
A legal obligation
is a legal or tie which imposes upon a definite person the necessity of doing
or abstaining from doing a definite act or acts If A agree to buy 10 bags of sugar from B at
the price of 10$ per bag there is a legal obligation
Social obligation
A social obligation is an obligation or duty which related to social
domestic or moral affairs or matters there is non-performance of a social
obligation the aggrieved party cannot take any legal action against the party
in default
all agreement are not contracts
the agreement may create a legal obligation or a social
obligation but to become a contract an agreement must give rise to legal obligation only a agreement which create a legal
obligation can become a contract
Essential
of a valid contract
To an agreement to
become a contract there are some requirement to fulfil the essential
1 Plurality of
parties : a contract is agreement enforced by law the agreement only considered when offered by
one and accepted by another there must be two person in the contract where the
one is the offer and another is the accepted
2 Offer and
acceptance: there must be a valid offer and there must be a acceptance when
one party offer to one that willingness to do work and the other party accept
the offer that it is a valid offer there
should be a proper offer and there is no forcing the other party to accept
3 Intention to create
legal obligation: the agreement should between two party should be with
legal obligation a legal relationship between them a contract for social and
domestic is not a contract Example (Agreement between the husband and wife
about there marriage is not a contract because marriage is not a contract) A
invited B friend to attend the dinner at A house B failed to attend he dinner
at A house but B failure to attend the dinner
A can’t sue B because it is not a contract
4 Lawful consideration:
an agreement must be law full supported by the law to enforced by the law a
agreement only when each of the contracting parties gives something and get
something on return
5 Free consent:
the agreement enforced by the law it must be done free consent by the both
parties first the agreement must be based on the consent of the parties (free
consent is which the party enter into agreement on his own will rather force or
in any other way ) the agreement is not an agreement until both the party
entered in an agreement on their own will
6 Capacities of the
parties to enter in an agreement: before entered in an agreement the
capacity of the party the legal capacity to enter and to performer the contract
there many consideration about the party tis age (minority) lunacy idiocy drunkenness
these type of person are not competent for contract
7 Performance
possibility: the agreement must be capable of being performed that the
agreement can be performed and is legally done Example A agree to B that he
will bring magical treasure and this is not a contract and it can’t be
performed
