Terms of Contract

In: Other Topics

Submitted By sha1224
Words 1932
Pages 8
It is apparent that two souls have moved into a contract of sale as circumscribe in section 2 (1) SGA, which says that a contract of sale of commodities is a contract by which the dealer agree to hand over the possession of goods to the customer for payment in money, termed as the price. Notwithstanding the conditions of the contract have been fabricated in order to pass over the indispensable rights of the individuals of this contract.
The conditions of the contract mention the specific responsibilities and commitment of each individual to the contract.
We must seem at the implied terms of this contract in order to incline to the considered objectives of the contracting individuals by way of affirming the demonstrated terms and creating a causal link to those that are not boldly demonstrated In directing the tacit terms for the protection of the people that are to be are established and thus gives rise to any reparation that may be provided by these specifications.

There are two methods by which terms are implied in a contract.
By custom, the court and by statute. Normally the terms that has been implied by a custom or the trade usage explain those terms in a conventional way as those circumstances are the common situation within the business context. For instance a case, Mr Deborah buys a car from a well reputed showroom car and so it is expected that the car has to be adequate for its function. This genre of implied terms normally acts in accordance with the conditions that are implied by statute since this should be up to the court to resolve a homogenized ruling for the requirement of a customary term.
The condition applied by the law depends on legal obligations that has been attained from an individuals from a common contractual alliance and hence it does not rely…...

Similar Documents


...Different kinds of Legal Contracts Teneisha Bonner BUSN150-1303A-03/Professor Smith August 11th, 2013 Abstract One of the main attributes of an advanced community is the legal obligation contract, which permits individuals to make promises with one another knowing that they have legal options in the circumstance of a violation of the deal. Contract regulation in the United States is based on common law and it sometimes varies by other states and even with federal circuits. In this paper, different legal contracts will be discussed. Different Kinds of Legal Contracts A contract can be either an express agreement or an implied agreement. An express contract is one in which the words are being pronounced verbally, either orally or in writing. An implied contract is one in which some of the words are not being pronounced in terms. An implied contract can either be understood in fact or understood in regulations. An agreement which is mentioned in fact is one in which the situations imply that both individuals have made a deal even though they both have not done so expressly. For instance, when an individual goes to the doctor for his/her yearly physical, he/she always comply that they will pay an affordable price for the labor. If he/she does not want to pay for the service after the physical, then he/she has broken the contract that has been implied in fact. When an express contract is being implied, both parties have to decide whether if the terms are being......

Words: 705 - Pages: 3

Contracts - Express Terms

...LAW204 - CONTRACTS Week 5 – Express Terms ___________ ** N.B. The main cases covered in lectures, containing MAIN RULES are highlighted in YELLOW! READINGS/LECTURE CHAPTER 10 – EXPRESS TERMS Introduction – Contents of a Contract? * Express Terms: contain contractual promise and terms that are capable of being Incorporation by pre-contractual statement: * Courts look at what the parties said * Have these statements become express terms? Statements the court acknowledges: * Irrelevant statements and Puffs: * Sales talk, exaggerations e.g. best on the market! * No reasonable person is supposed to take it seriously * No affect on contract, not actionable * Representations: * Factual statements which are intended to and do induce the representee to enter the contract not made to be binding * Merely representational/description with no promissory intent – truth not guaranteed by their marker * LACK ANY CONTRACTUAL FORCE * False representations may constitute a misrepresentation innocent party may be able to rescind the contract, or attract remedies under statue (misleading and deceptive conduct) * Legal action is limited to actions in negligence or fraud (deliberately lied to you) or misleading or deceptive conduct under s18 of Australian Consumer Law * Terms: * Contractual undertakings intended to be binding – not merely......

Words: 6658 - Pages: 27


...explaining the essential elements of a contract and the applicable remedies in the event of a breach What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? explaining the essential elements of a contract and the applicable remedies in the event of a breach What are the 4 requirements of a valid contract? 1. Agreement 2. Consideration 3. Contractual Capacity 4. Legality What are the 3 elements that are necessary for an offer to be effective? 1. The offeror must have a serious intention to become bound by the offer 2. The terms of the offer must be reasonably certain or definite, so that the parties and the court can ascertain the terms of the contract 3. The offer must be communicated to the offeree What is an offer? a promise or commitment to do or refrain from doing some specified action in the future. What are the 3 exceptions to the consideration requirement? 1. Promises that induce detrimental reliance, under the doctrine of promissory estoppel 2. Promises to pay debts that are barred by a statute of limitations 3. Promises to make......

Words: 1505 - Pages: 7

Contracts- Online Incorporation of Terms

...to the incorporation of terms of these contracts. With such ambiguity within the ETA , this can create problems for parties entering into a contract of an electronic nature. This problem extends further to the judicial system, with no clear legislative materials to facilitate courts in the interpretation of how terms are to be incorporated into a contract. Two common methods of contract term incorporation will be discussed further in both an electronic and non-electronic context. These are incorporation of terms by signature; and incorporation of terms by notice. Incorporation of terms by signature Contracts that require a signature for validity will, under common law (for at least traditional written contracts), assume that the signing party has read and agreed to all terms that are stated within the contract, regardless of whether the parties have in fact read the contract terms. This reasoning was established in the English case of L'Estrange v Graucob The High Court of Australia accepted L’Estrange v Graucob (L’Estrange) as good law in Australia in the case of Toll (FGCT) Pty Limited v Alphapharm Pty Limited (Toll). Macdonald argues that if signatures were to be recognised as sufficient in the incorporation contract terms for online contracts, Toll and L’Estrange, would be recognised as the applicable law for these online contracts, despite the clear distinguishing features between traditional contracts and online contracts. McCullagh,......

Words: 1898 - Pages: 8


...Basic Elements of Contract In order to form a valid contract, each agreement must fulfill some important elements which are stated in Section 10 (1) of Contract Act 1950, “All agreements are contract if they are made by the free consent of parties competent to contract, for a lawful object, and are not hereby expressly declared to be void.” This section emphasizes the legal contract, the willingness and the parties capable of contracting and consideration which are all part of the basic elements of a contract. The following are the basics elements of the contract, a) Offer b) Acceptance c) Consideration d) Ability to Contract e) Intention to Create Legal Relations f) Certainty g) Free and Genuine Consent 1.2 Types of Contract All types of contracts can be divided into two, which is in the form of bilateral and unilateral contracts. a) Bilateral contract It will happen when made ​​between two or more parties where the parties have been identified and can be determined. b) Unilateral contract This contract may be made by one party to the public in any of the other unidentified. For example, such as advertisements in the newspapers addressed to the public. 1.3 Forms of Contract Contract may be made orally or in writing. Contracts made ​​orally are contracts that are made through our words or actions of the parties involved. This type of contract is difficult to prove in the event of a default or breach of contract. However, this......

Words: 9665 - Pages: 39


...Practice Susan Towers 421 April 21st 2014 Roseali Drawbaough Theory to Practice When entering into a contract, it is important to note the elements of what makes a contract a legal binding agreement between two parties. The Theory to practice case is between Mr. Chou and BBT. Mr. Chou agreed soul distributorship on a 90-day contract agreement in return that BBT paid a sum for Mr. Chou’s product. Agreement, mutual assent, consideration, and capacity legality made up the two parties entrance into the contract. As in the case of BBT and Mr. Chou all contracts have differences to how they are perceived, what makes them legal in oral and written form that can either be remedied or voided by various laws and regulations. Questions 1-6 1. At what point, if ever, did the parties have a contract? The parties had an agreement when all the elemental requirements were formed in the original agreement between price, distribution, payment and terms were agreed upon. Approvals of the terms are supported by Consideration, capacity, and performance. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts would weigh in favor of Chou because of the language and actions of intent to contract were reasonably certain. The offeror and offerre both had serious intentions to be legally bound by the terms of the contract. 3. Does the fact that the parties were communicating by e-mail have any impact on your......

Words: 898 - Pages: 4

Terms of Contracts

...Terms and Exemption Clauses 1) Parol Evidence 2) Terms and Representation 3) Implied Terms a) In Fact b) In Law c) In Statute d) By Custom 4) Classification of Terms 5) Exemption Clauses: Incorporation a) By Signature b) By Notice c) By Previous Course of Dealing 6) Construction a) Contra Proferentem Rule b) Rule in Cases of Negligence Liability c) Doctrine of Fundamental Breach 7) Unfair Contract Terms Act (UCTA) a) Liability in Negligence b) Liability in Contract c) Sale and Supply of Goods d) Test of Reasonableness Parol Evidence Rule a) No extrinsic evidence (such as any oral agreement or statement) is admissible to add to, vary or contradict a written instrument or contract. b) Exceptions c) Contract was the result of mistake, a lack of consideration, or of misrepresentation d) Mistake in the written contract i) Joscelyne v Nissen (1970) e) Contract has not yet come into existence or that it is no longer in operation i) Maybe due to the occurrence or non-occurrence of a certain event by a certain date, which has been accepted verbally ii) Pym v Campbell (1856) iii) Obligation to buy shares in an invention was conditional upon a 3rd party approving the invention, of which the approval had not been received. f) Where extrinsic evidence demonstrates that a particular custom of trade must be implied to, and therefore become a part of, the written......

Words: 6952 - Pages: 28


...Phillippa Webb 11/20/15 A contract is a legally binding agreement between competent parties and can be written, spoken or implied. A contract is valid and enforceable when the following things exist, an offer, the acceptance of the offer, it must be legal, consideration and it must be fair for all involved. Contracts can be written, verbally or even implied, however the best type of contract is written. Ever heard the saying get it in writing, that is because when things are in writing they are more believable than hearsay or assumption. Although written contracts are good, an implied contract is also good because a person’s actions can determine the validity of the contract. When parties enter into a contract they are obligated to perform certain duties The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law.Promises bind the representatives of the promisor in case of the death of such promisors before performance, unless a contrary intention appears from the contract. | The  promises made by the parties define the rights and obligations of the parties. The contract allows parties to define their relationship, it is the means of structuring  relationships . The fudamental principe of the binding nature of contracts (pacta sunt servanda) requires that the agreement be made at arm's length.  Contract law is sometimes......

Words: 327 - Pages: 2

Contracts 613 Mid Term Exams

...Contracts 613 MIDTERM EXAMINATION Contracts 613 Issue: Valid Contract Betty v. Art Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never built a barn for hire, he would charge $100 per square foot about $10 more than expected cost was intent to be bound by contractual agreement. When Art told Betty that he could build a 50 x 50 barn Betty said, "OK, if you guarantee January 1, 2005 completion” by her own words that she wanted to be bound by contractual agreement, Art agreed to the contract. Hence, it would be deemed that this present outward manifestation, because in the parties own words indicates their intent to be bound by contractual agreement for the build of Betty barn. Art will counter that their agreement was nothing more than a preliminary negotiations because the price increase there was a new agreement Betty’s initial inquiry was for $100 per square due to the increase in lumber he had to increase the price by $30 per square feet. Further, he had contracted to sale his farm and would not be able to build the barn. However, since one barn would build (quantity), 50’ by 50’ (size), to......

Words: 2868 - Pages: 12

Accounting for Long Term Contracts

...Accounts Receivable XXX To Record Revenue, GP, Completion, and expense: To Recognize Revenue and GP (dr.) Construction in Process (GP) XXXX Construction Expenses XXXX (cr.) Revenue – LT Contracts XXXXX Record Completion of Contract: (dr.) Billings on Construction in Progress (FULL BILLING AMT) (cr) Construction in Process (FULL CIP AMOUNT) Balance Sheet Reporting: CIP & Rec. Profit > Billings = Current Asset Billings > CIP & Rec. Profit = Current Liability ------------------------------------------------- Completed Contract Method Billings on Construction in Process XXXXXX Revenue – LT Contracts XXXXX Costs of Construction XXXXXX Construction in Process XXXXXX ------------------------------------------------- Losses on LT Contracts 1. Loss in current period – contract still profitable JE: (dr.) Consruction Expenses XXXXXX (cr.) Construction in Process (loss) XXXX (cr.) Revenue – LT contracts XXXX 2. Loss on an Unprofitable Contract – always recognize loss immediately. JE: (dr.) Consruction Expenses XXXXXX (cr.) Construction in Process (loss) XXXX (cr.) Revenue – LT contracts XXXX Accounting for Installment Sales 1. Compute a proper GP % 2. Record installment sales, cost of installment sales, and deffered GP 3. Compute realized GP on installment receivables 4. Deferred GP balance at the end......

Words: 277 - Pages: 2

Contract Terms

...which the terms of a contract can be classified according to their origin, and also according to the type of breach and evaluate the legal significance of the different type of terms and their impact upon the contract. Terms are the contents of the contract which determines the parties’ rights and obligations. The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The significance of a contract are known as terms or clauses. In general an agreement is based on various terms and even the simplest form of contract will have terms. The terms are not written in simple contract, although writing is required in certain type of contracts such as contracts for the sale of land, mortgages and consumer credit agreement. Contract terms may be express or implied and they may be classed as either conditions, warranties or innominate terms. A condition is a vital term of the contract. A breach of a condition allows the party who is not in breach of contract either to terminate performance of the contract and obtain damages for any loss suffered as a result of breach. A warranty is a minor term of a contract which is not central to the existence of the contract. A breach of a warranty only enables the innocent party to claim damages. A warranty is a term which refers to the subject matter of the contract but not warranty to the main purpose of the contract.  Unlike a condition term, a......

Words: 519 - Pages: 3


... Republic of the Philippines PROVINCE OF BUKIDNON Capitol Compound, Malaybalay City General Conditions of the Contract PEEDMO-BPH & PEEDMO-PHS (Val) 1. Definitions 1.1 In this Contract, the following terms shall be interrupted indicated: a) “The Contract “ means the agreement entered into between the PROCURING ENTITY and the Supplier, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. b) “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations. c) “The GOODS” means all of the supplies, equipment, machinery, spare parts, other materials and or ground support services which the Supplier is required to supply to the PROCURING ENTITY under the Contract. d) “The Services” means those services ancillary to the supply of the GOODS, such as transportation and insurance, and any other incidental services, such as installation, commissioning, provision of technical assistance, training, and other such obligations of the Supplier covered under the Contract. e) “GCC” means the General Conditions of Contract. f) “SCC” means the Special Conditions of Contract. g) “The PROCURING ENTITY” means the organization purchasing the GOODS, as named in the SCC. h) “The PROCURING ENTITY’S country” is the Philippines....

Words: 5216 - Pages: 21


...After a review of the Offer and Acceptance video I opted to go with Option 3, creating a contract that clearly states in writing the implied terms of the contract verbally communicated in the contracts. A contract is not a replacement for trust; it is the basis for trust. “Contract administration starts with developing clear, concise performance based statements of work to the extent possible, and preparing a contract administration plan that cost effectively measures the contractor’s performance and provides documentation to pay accordingly.” (www.acquisition.gov/bestpractices, Jan. 09, 2012) “For a contract to be enforceable, the following four (4) basic requirements must be met: 1) Agreement- an agreement between the parties, that requires a offer; 2) Acceptance of the offer; 3) Consideration, the promise must be supported by a bargained-for consideration that is legally sufficient. Money, personal property, real property, provisions of services, and such qualify as consideration. 4) Contractual capacity, [t]he parties must have contractual capacity for the contract to be enforceable against them. Contracts cannot be enforced against parties who lacked contractual capacity when they entered into a contract. 5) Law object, [t]he object of the contract must be lawful. Most contracts have a lawful object. However, contracts that have an illegal object are void and will not be enforced.” (Business Law: Legal Environment, Online Commerce,......

Words: 795 - Pages: 4


...__________________State:________Zip:_______ Hereinafter referred to as Client. A usable copy of this contract follows this explanation. All the first part, above, is doing is stating that this contract is between (fill in your name) and the client. (Fill in his personal name, company name, address). The client may want to have his attorney see this contract. 1. Purpose of Agreement: Circumstances have lead Client to believe that he, or other parties, are being targeted by criminal forces of some kind and he hereby agrees to contract with Bodyguard to provide personal protection services for himself and/or other parties for the length of time specified in this agreement. NOTE: Purpose of agreement. This is a statement stating that your client needs your assistance, and you are negotiating this agreement. 2. Duration: This contract shall be for a period of____________________________ from the below date. Contract must be signed by both parties and will remain in force unless terminated under conditions listed in Paragraph 3. If this contract should be terminated, for any reason, before the expiration date payment client agrees to pay bodyguard a fee calculated at a per day minimum of $400 daily, NOTE: Duration, #2, how long will this contract last, and the next paragraph (#3) stipulates how it can be cancelled 3. Termination: This contract may be terminated under the following conditions: (a) Agreement may be terminated by Client at any time;......

Words: 1529 - Pages: 7

Make or Sub Contract Term Paper on Financial Management

...SML770 Make or Sub-contract Problem SML770 Financial Management Term Project M/s Good Machining Co. Make or Sub-contract Dated: 21st April 2008 Team Members: Name Arvind Kundalia Rahul Jain Sanjeev Thukral Entry No. 2007SMN7096 2007SMN7088 2007SMN7050 Mobile Phone 9910900355 9818031983 9818151991 Email ar_kundalia@yahoo.co.in Rahuljain_k@yahoo.com Sanjeev.thukral@xansa.com Project Mentor: Prof. P.K. Jain Page 1 of 4 SML770 Make or Sub-contract Problem Problem Statement M/s Good Machining Co. New Delhi, manufactures almost 15 different components for industrial equipments with a sales turnover of over Rs. 1 Crore per annum. Recent recessionary trends in the industry had adversely affected the volume of business and profitability of the Company. A major portion of their business is in supplying machined parts to equipment manufacturers. Good Machining had no foundry of its own but bought casting from the vendors. The Company employed 60 persons of whom 15 were in the machining department. Even though business was slack due to recession, the management did not want to layoff the skilled labour. The reduction in the volume and profitability had led the management to examine in details the profitability of their products. Two standard parts A & B caused particular concern to the management. The forecasted demand for these parts has gone down to only 450 and 220 per month respectively for the coming 1 year. This is substantially lower than normal......

Words: 1156 - Pages: 5