Rules of Contract Law

Question 1

What is contract law?

Answer 1

An area of private law concerned with agreements which range from a purchase to multi-million business deals.

Question 2

What is a contract?

Answer 2

An agreement between two parties that is legally binding and enforceable in court.

• If either party fail to complete their part, they may be in breach.

Question 3

What is formation of a contract?

Answer 3

This is the making of an agreement.

• To be legally binding there has to be valid offer, acceptance, intent to create legal relations, and consideration.

Question 4

What are contract terms?

Answer 4

Obligations and rights of each party in a contract.

• E.g. buying a car and handing over legal ownership.

Question 5

What are vitiating factors?

Answer 5

These are factors which can make a contract invalid.

• This can be through economic duress or misrepresentation.

Question 6

What is discharge of contract?

Answer 6

This is to do with the ending of a contract.

• This can be through performance, breach, or frustration.

Question 7

What are remedies?

Answer 7

Legal remedies are what a party to the contract can seek when it has been breached or affected by a vitiating factor.