Contract Law

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contract law

Transcript of Contract Law


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

Contract in legal sense- agreement between 2 or more parties that is legally binding between themS 2(H) CA- agreement enforceable by law

INTRODUCTIONS2(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/ promiseOFFERUnilateral 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 dont recover. P asked for claim but D denied.Court Held that offer is valid to all world, so D must pay to P


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it comes to the knowledge of the person to whom its madeCOMMUNICATION OF OFFEROnce open, remains until it lapses or withdrawn

S5(1) proposal may be revoked any time before the communication


REJECTIONOfferee communicates his rejection

COUNTER OFFERAcceptance with modificationOperates as rejection of original offer

INVITATION TO TREATNon 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 treatREJECTION, COUNTER OFFER,ITTS2(b)- when person to whom the proposal is made signifies his assent thereto.

Agreement existed when offer accepted

Postal rule

ACEPTANCEIn 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 groupDISCUSSION 1S26 CA- agreement without consideration is void

Something value exchanged for something else in value

CONSIDERATIONTYPES OF CONSIDERATIONCont..S10 CA- all agreement are contract if made by free consent of parties (competent to contract)

WHO ARE COMPETENT?Age of majoritySound mindNot disqualified from law

LEGAL CAPACITYS30 CA- Agreement void for uncertainty

Term of agreement must certain and not vagueCERTAINTY



Q & A