Law of Contracts

Question 1

1. Definition of a Contract

Answer 1

• a contract is an agreement which is enforceable by law and creates rights and duties between parties.
• to conclude a contract, one party must make an offer and the other must accept.
• not all agreements are enforceable

Question 2

2. Requirements of Contract

Answer 2

1. There must be an agreement and consensus reached between the parties.
2. Both parties must have capacity to act.
3. The contract must be lawful.
4. It must be physically possible.
5. Comply with the formalities required by law, even though most contracts dont require them to, it is in the parties best interest to have a written contract which is evidence of the existence and agreement of the contract.

Question 3

3. Terms of a Contract

Answer 3

• this refers to the content of the contract

- include essentalia, naturalia and incindentalia

Question 4

3.1 Essentalia

Answer 4

• these are the ‘essential terms’

- they are required by law and if are missing, the contract is not valid.

Question 5

3.2 Naturalia

Answer 5

• these are the automatic terms.
• they are not required by law but are imposed by law and automatically form part of a contract.
• they are designed to protect the parties.
• the constitution and other statutes provide naturalia.

Question 6

3.3 Incindentalia

Answer 6

• a term which excludes naturalia, is called incindentalia

- they are neither required by law nor imposed.