PROFESSIONAL PRACTICE IPROFESSIONAL PRACTICE IPROFESSIONAL PRACTICE IPROFESSIONAL PRACTICE I

[QSD 289][QSD 289][QSD 289][QSD 289]

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Mohammad Mohammad Mohammad Mohammad NasharudineNasharudineNasharudineNasharudine ShuibShuibShuibShuib

�INTRODUCTION

�OFFER

�ACCEPTANCEACCEPTANCE

�CONSIDERATION

�INTENTION TO CREATE LEGAL

RELATIONS

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‘a clear understanding of the contractformation process will lead to compilationof contract documents which are consistent& free ambiguity, even pitfalls, & thus mayassist in avoiding possible disputes fromdiffering interpretations & constructions.’differing interpretations & constructions.’

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� A legally binding agreement between two or

Sir William Anson, The Learned English Authority

On Law of Contract has defined a contract as:-

DEFINITION

� A legally binding agreement between two or

more parties, by which rights are acquired by

one or more to acts or forbearances on the

part of the other or others.

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CONTRACT

FORMATION

1. OFFER 4. INTENTION

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2. ACCEPTANCE 3. CONSIDERATION

DESIGN TEAM

CLIENT/EMPLOYER

BUILDING TEAM

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Architect

C&S Engineer

M&E Engineer

QS

Land Surveyor

Main Contractor

Domestic Sub-

Contractor

Domestic Sub-

Contractor

Nominated Sub-

Contractor

Nominated Sub-

Contractor

Nominated

Supplier

Nominated

Supplier

CLIENT/EMPLOYER

MOA CONTRACT

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DESIGN TEAM BUILDING TEAM

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� An offer must be made to someone - it may

be made to any number of people, even the

whole world:

DEFINITION

whole world:

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� A vague term of a contract may spoil it

because it is not certain what the acceptor is

actually accepting:

DEFINITION

actually accepting:

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� A valuable consideration may consist either in

some right interest profit or benefit accruing to

one party or some observance detriment loss of

responsibility given suffered or undertaken by

the other - Curries v Misa.

DEFINITION

the other - Curries v Misa.

� Consideration is in two lots with each party

suffering both a benefit and a detriment each

giving and receiving and thereby creating the

agreement.

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�Most consideration begins as a promise for a

promise. At that stage the consideration is said

to be executory.

� As each party performs his or her part of the

consideration it is said to be executed.

DEFINITION

consideration it is said to be executed.

� Sometimes there may be a considerable time

between the promise and the performance as in

the sale of land in other cases the promise and

performance may for both parties be

simultaneous as in the sale and purchase of

goods in a supermarket.

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�Unilateral contracts are unusual in that instead

of both the offer and the acceptance being

promises and executory, the promise of the

offer is executory consideration but the

performance of the acceptance is executed.

DEFINITION

performance of the acceptance is executed.

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� Provided consideration is real and genuine then

it need not be adequate. i.e. as long as there is

some consideration then the courts will not

RULES OF CONSIDERATION

some consideration then the courts will not

inquire as to whether the bargain is "fair".

�However although consideration may be small it

must not be a sham ( £1 for a Rolls Royce is a

valid bargain if the parties agree):

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� Agreements are either domestic and social or

commercial and business.

DEFINITION

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� Agreements are either domestic and social or

commercial and business.

DEFINITION

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