Download - Contract Law
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CONTRACT LAW2.1 Demonstrate understanding of Contract Law in tourism and hospitality industry.
2.1.1 Define the meaning of terminologies in Contract Law.
2.1.2 Discuss the fundamental elements of Contract Law.
2.1.3 Describe the implication of Contract Law to tourism and hospitality business activities.
2.2 Describe the legal consequences and liabilities for breach of contract
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Contract in legal sense- agreement between 2 or more parties that is legally binding between them
S 2(H) CA- agreement enforceable by law
INTRODUCTION
Elements of
contract
Offer
Acceptance
Consideration
Intention to create legal
relation
Certainty
Capacity
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S2(a) CA- when a person shows his willingness to do something or abstain (stop) from doing something, in exchange for something of value
Is a proposal to exchange promise
May be implied, express
Person making offer- offeror/ proposer/ promisor
Person receive offer- offeree/ promise
OFFER
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Unilateral offer- no specific offeree in mind (general public)
Bilateral offer- offeree is identifiable (definite person/class of person)
CARLILL V CARBOLIC SMOKE CO LTD(1893) QB 256D was an owner of medical shop, advertised the medicine that claimed to heal all disease and offer to pay £100 if anyone not recover after take the medicine. P bought it, consume but don’t recover. P asked for claim but D denied.Court Held that offer is valid to all world, so D must pay to P
TYPES OF OFFER
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Offer must be communicated to offeree before can be accepted.
S4(1) – proposal is complete when it comes to the knowledge of the person to whom its made
COMMUNICATION OF OFFER
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Once open, remains until it lapses or withdrawn
S5(1) – proposal may be revoked any time before the communication…
TERMINATION OF OFFER
S6 CA
Lapses of time
Death/mental disorder
Communication of notice
Failure of the acceptor to
fulfill condition
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REJECTION Offeree communicates his rejection
COUNTER OFFER Acceptance with modification Operates as rejection of original offer
INVITATION TO TREAT Non binding statement/conduct that invites interest
FISHER V BELL (91960)3 ALL ER 731D displayed flick knife with price tag. Later he been charged under Restriction Offensive Weapon Act.Court Held: displaying not amount to offer. Its merely invitation to treat
REJECTION, COUNTER OFFER,ITT
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S2(b)- when person to whom the proposal is made signifies his assent thereto.
Agreement existed when offer accepted
Postal rule
ACEPTANCE
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In your own group, set up a mini drama that shows the application of element of offer,
invitation to treat and acceptance of contract in real life.
Your drama must include and apply all the elements of contracts that you have learned
before.
10 minutes for each group
DISCUSSION 1
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S26 CA- agreement without consideration is void
Something value exchanged for something else in value
CONSIDERATION
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TYPES
TYPES OF CONSIDERATION
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CONSIDERATION
Cont..
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S10 CA- all agreement are contract if made by free consent of parties (competent to contract)
WHO ARE COMPETENT? Age of majority Sound mind Not disqualified from law
LEGAL CAPACITY
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S30 CA- Agreement void for uncertainty
Term of agreement must certain and not vague
CERTAINTY
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WITHOUT FREE CONSENT
COERCION UNDUE INFLUENCE
MISREPRESENTATION FRAUD
VOIDABLE CONTRACTEFFECT
VOIDABLE AT OPTION OF INNOCENT PARTY
RESCIND CONTRACT
CONTINUE CONTRACT
INSIST RIGHT POSITION BENEFIT
RETURNED
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VOID AGREEMENTS
MISTAKE ILLEGALITY NO CONSIDERATION
VOID CONTRACT
EFFECT
NOT IN EXISTENCE BEGINNING
UNENFORCEABLE BY
LAW
RETURN BENEFIT
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DISCHARGE OF CONTRAC T DISCHARGE OF CONTRACT
PERFORMANCE FRUSTRATION AGREEMENT BREACH
IMPOSSIBLE EFFECT
EFFECT BENEFIT
CONTRACT ENDS RETURN BENEFIT RETURN RECEIVE
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REMEDIES
REMEDIES
DAMAGES SPECIFIC PERFORMANCE INJUNCTION QUANTUM MERUIT
DAMAGES INADEQUATE
PROHIBITORY INTERLOCUTORY MANDATORY
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Q & A
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