Principles of Business
Topic: Introduction to Law (2)Introduction to Contract Law
Stage 2 Lecture 15
Key topics / learning outcomes of this lecture
By the end of this session, you will be able to:
• Explain what a contract is
• List the essential elements of a binding contract.
• Demonstrate understanding of the limitations of freedom to contract.
2
The story so far....
• What law is...
• Classifications of law...
• How laws are made...
• How laws are enforced...
3
4
Company Law
Employment Law
Property Law
Contract Law
Tort Law
IP Law
Areas of Law
impacting on
Business
7
What makes an agreement legally
enforceable?
Consideration
Intention
Not necessary to be in writing
10
Remedies for breach of contract
Damages Specific performance
To put C back in the position s/he would have been in, had the Contract been performed
An order to the D to fulfil his/her obligations under the Contract.
Usual remedy Equitable remedy
Less common
Contract Law
• What is a contract?
• How is it formed?
• Contractual terms
• Termination of contracts
• Remedies for breach
• Vitiating factors (aka excuses)
11
Contracts are voluntary but:
There are limits, e.g.
• Unequal bargaining power
• Implied terms
• Onerous or unusual terms
• Special relationships
• Public policy
13
Summary
• Contract = legally enforceable agreement
• Essential to functioning market economy
• Terms can allocate risk and anticipate problems
• Limitations to freedom to contract
• Four essential elements
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Essential work for next week
• Please consult the OLE for details of:– Essential readings*
– Seminar/workshop preparation work*
– Recommended further readings
– Any additional learning
* Essential readings and preparation work must always be completed in time for the next session
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