contractual requirements management and legal skills
TRANSCRIPT
Contractual Requirements
Management and Legal Skills
Law of Contract - Definition
An agreement which creates or is intended to create a legal obligation between the parties to it.
http://www.scotland.gov.uk/Topics/Justice/law/damages/contract
Law of Contract - Definition
An agreement which creates or is intended to create a legal obligation between the parties to it.
http://www.scotland.gov.uk/Topics/Justice/law/damages/contract
There must always be at least two parties to an agreement
Law of Contract - Definition
An agreement which creates or is intended to create a legal obligation between the parties to it.
http://www.scotland.gov.uk/Topics/Justice/law/damages/contract
There must be ‘consensus in idem’,
meaning ‘agreement about the same thing’
Law of Contract - Definition
An agreement which creates or is intended to create a legal obligation between the parties to it.
http://www.scotland.gov.uk/Topics/Justice/law/damages/contract
A social or personal obligation (eg we
agree to go out for a meal) does NOT
create a legal obligation
How a contract is formed There is an offer by one party, and an
acceptance by the other. The offer and acceptance can be spoken
or written. The offer and acceptance can be
inferred from the actions of the parties.
How a contract is formed
An offer by one party, and an acceptance by the other.
The offer and acceptance can be spoken or written.
The offer and acceptance can be inferred from the actions of the parties.
So if you take goods to a cash desk in a shop
this shows you are offering to buy. The
cashier’s acceptance of your payment shows
he/she is accepting your offer.
Offer, or willingness to negotiate
An offer is a statement of willingness to contract on specific terms. If the terms are accepted the contract is binding.
Willingness to negotiate is an invitation to offer, eg advertising goods for sale, catalogues or display of goods in a shop window
Acceptance Must meet the offer – agreement on the
same thing. In this case a lawful contract has been formed.
If acceptance includes terms that were not in the offer, no contract is formed. This would be a counter-offer, which
would need to be accepted by the other party for a contact to be formed.
Time of Acceptance
If the offer is stated to be open for a period of time it cannot be revoked within that time. If it is accepted within that time a contract is formed.
For acceptances made by post, the acceptance time is determined by the date and time it was posted.
Recall of offer
If the offerer undertakes to keep the offer open for a definite period, it cannot be recalled within that time.
If the offerer states that acceptance must be made within a specified time, and that period of time lapses, the offer is automatically recalled.
Recall of Offer If the offerer does not state a time within
which acceptance must be made, the offer remains open for a ‘reasonable time’.
Where there is no promise to keep the offer open for a period of time, it can be recalled at any time before it is accepted.
An offer is automatically recalled by the death, insanity or bankruptcy of either party.
Recall of Acceptance If an acceptance was posted and the
party change their mind regarding acceptance they can send another communication: If the second communication arrives after
the first, the acceptance is binding. If the second communication arrives at
the same time or before the first, there is no binding contract.
Matters affecting the validity of a contract
Contracts can be: Void – there is no contract Voidable – they are valid but can be set
aside Unenforceable – cannot be enforced by
the courts
Matters affecting the validity of a contract
Contracts can be: Void – there is no contract Voidable – they are valid but can be set
aside Unenforceable – cannot be enforced by
the courts
Eg people under 16 have no capacity to contract – any contract made is void. Contracts with insane people are also void.
Matters affecting the validity of a contract
Contracts can be: Void – there is no contract Voidable – they are valid but can be set
aside Unenforceable – cannot be enforced by
the courts
Eg people between 16-18 can apply to court to have contract set aside. So can people who entered into a contract whilst intoxicated.
Matters affecting the validity of a contract
Contracts can be: Void – there is no contract Voidable – they are valid but can be set
aside Unenforceable – cannot be enforced by
the courts
Eg sporting agreements or gambling agreements are unenforceable by the courts.
Error and Misrepresentation Mutual error – both parties have
misunderstood – contract is void/voidable Unilateral error – one party has paid
more for something that it is worth Innocent misrepresentation – making a
false statement, believing it to be true Fraudulent misrepresentation – making a
false or reckless statement, unaware whether it’s true
Breach of Contract One of the parties fails to carry out
his/her obligations Other party is entitled to damages or
compensation Breaches can be:
Failing to perform the contract Delaying performance (missing a
deadline) Unsatisfactory or defective performance
Breach of Contract One of the parties fails to carry out
his/her obligations Other party is entitled to damages or
compensation Breaches can be:
Failing to perform the contract Delaying performance (missing a
deadline) Unsatisfactory or defective performance
Refusing to carry out his/her part of agreement. Innocent party has right to withdraw.
Breach of Contract One of the parties fails to carry out
his/her obligations Other party is entitled to damages or
compensation Breaches can be:
Failing to perform the contract Delaying performance (missing a
deadline) Unsatisfactory or defective performance
If timing is important, in
nocent
party has right to withdraw. Not
the case if timing not im
portant
but damages may be claimed if
appropriate.
Breach of Contract One of the parties fails to carry out
his/her obligations Other party is entitled to damages or
compensation Breaches can be:
Failing to perform the contract Delaying performance (missing a
deadline) Unsatisfactory or defective performance
Depends on le
vel –
may be able to
withdraw if
breach is
material
Now complete the worksheet to test your
knowledge
Some Further Resources
www.musiclawupdates.com http://www.scotland.gov.uk/Topics/Justic
e/law/damages/contract