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contract lesson plan
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Simple Contracts by P. Brown
a social agreement between two or more
parties which sometimes may not be legally
binding.
A contract is a legally binding agreement
that is enforceable by law.
All contracts are agreements, but not all
agreements are contracts.
This means that some agreements are not
legally binding.
The law sees all domestic agreements as not
legally binding and thus the court expects the
relative or friend to prove that he/she did
intend to create legal relations.
◦Simple contract
◦Specialty or speciality contract
◦Contract of record
A simple contract is one made by two or
more persons which must have
consideration as an important feature of it.
Offer Consideration
Acceptance
Offer and acceptance of that offer
Form or consideration
Capacity
Legality
Possibility
Genuineness of the parties to enter into a
contract
Good faith
An offer is a proposal or a bid made by one party to another either directly or through an agent.
For an offer to be genuine it must be made by the offeror.
An offeror is the person making the offer or the agent who represents him.
An offeree is the person accepting the offer.
An offer can be oral, implied by conduct or
put in writing. Note that a simple contract
need not be in writing.
An offer must be communicated to the offeree .
It must be clear and precise and can only be revoked or withdrawn before acceptance by the offeree.
This is when the offeror invites the offeree to make him an offer which may be either rejected or accepted.
This is not a genuine offer because an offer
must be made by the offeror.
Goods displayed in a store or a supermarket with a price tag attached.
Goods offered for sale by public tender.
An advertisement inviting tenders for goods.
In law an acceptance is achieved when the offeree unconditionally agrees to all the terms and conditions of the offer.
It must be noted there must be a genuine
offer made and not an invitation to treat, otherwise the acceptance is invalid.
An offer must be communicated before it is considered as legal.
An acceptance must be unconditional- the offeree must not change any of the conditions of the offer. Must be done in the manner stated.
An acceptance must be unqualified – the offeree must measure up to the expectations of the contract and not seek to change it.
An acceptance must also be absolute – all the terms and conditions must be agreed on totally and the offeree should not desire to change any aspect in his favour. Must be accepted within the stipulated time.
Once the offeree changes the terms of the agreement this is a counter offer and is equal to a rejection of the original offer.
An offer made through the post office is effective once the letter is posted. It does not matter if the letter was delayed or lost in the post.
An offer made through the phone, fax machine or any instantaneous means of communication is complete only when received and not transmitted.
Paul and Paula work with the same
accounting firm. Paul promised Paula to
take her to work every Monday morning
when her husband uses the family car out
of town. Paul did not turn up one Monday
morning so Paula was extremely late for
work and her supervisor was very upset.
◦ Paula reported Paul to the boss hoping that he
too would be reprimanded. Paula decided to
take Paul to court for breach of contract.
◦ Advise Paula if she had a contract with Paul in
the first place.◦ If she takes Paul to court, what will be the likely
outcome?◦ What is the difference between a contract and
an agreement?
Abiraj, BMC. (2006). Principles of business for CXC. 5th ed.
END OF LESSON