THE CYPRUS INSTITUTE OF MARKETING DMM COMMERCIAL LAW
INTRODUCTION 18 LECTURES CIM BOOKLET + TEXT BOOK ATTENDANCE CONTACT yangos@cima.ac.cy
COURSE ASSESSMENT 1. ASSIGNMENT No1. 7.5 % 2. ASSIGNEMENT No2. 7.5 % 3. MID-SESSIONAL EXAM... 15 % 4. FINAL EXAM.. 70 % PASSING MARK: 40 %
OUTLINE INTRODUCTION TO THE LAW OF CONTRACT AGREEMENT, CONSIDERATION, INTENTION, FORM CAPACITY, GENUINESS OF CONSENT LEGALITY, DISCHARGE REMEDIES, VARIOUS TYPES OF CONTRACT BANKING AND INSURANCE CONTRACTS EMPLOYMENT CONTRACTS CONTRACTS FOR THE SUPPLY OF GOODS AND SERVICES BILLS OF LADING AND CIF, FOB AND EX SHIP CONTRACTS
OUTLINE (Continued) AGENCY COMPANY LAW LEGAL PERSONALITY INTELLECTUAL PROPERTY
INTRODUCTION
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT Introduction to Contract Law What is a Contract? A contract is a promise or set of promises for the breach of which law gives a remedy, or the performance of which the law in some way recognises a duty. A contract is also defined as an agreement between two or more persons which is intended to have legal consequences. Every contract is an agreement but not every agreement is a contract. For example if you agree to go to a party it does not mean that a contract has been created and failure to go to the party is actionable.
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT Requirements for a valid contract 1. Agreement (offer and acceptance). 2. Consideration. 3. Intention to be enforceable in the courts. 4. Form: In some cases for example in conveyances of land the contract must be in writing. 5. Capacity: The parties must be legally capable of entering into a contract. This excluded minors, insane people, drunks and companies limited by shares acting outside their objects. 6. Consent: The parties entering into a contract must have entered the contract freely and unaffected by mistake, misrepresentation, duress or undue influence. 7. Legality. The object of the agreement must not be illegal If one of the above requirements is not present, the contract will be either void, voidable or unenforceable.
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT 1. The Agreement A. Offer An offer is a proposal by words or conduct, of willingness to enter into a legally binding contract. An offer may be made orally or in writing, to an individual or to a group of people. A person making an offer is the offeror and the person accepting the offer is called the offeree.
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT Invitations to treat: A genuine offer must be distinquished from an invitation to treat, which is where a person holds himself out as ready to receive offers, which he may either accept or reject. Advertisements are usually invitations to treat and the advertiser has goods for sale and not offers. One reason for this is that the shop keeper would be obliged to sell to every person who accepted such offer, even where the supplies run out (Pharmaceutical Society v Boots [1952]).
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT When does an offer end? When there is an acceptance. When there is a rejection of the offer. When there is revocation of the offer before it has been accepted. Lapse, after a limited period of time or after a reasonable period of time. Death of the offeror. Failure of a condition attached to the offer.
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT B. Acceptance If a contract is to be made, there must be an acceptance of the offer by the offeree. The acceptance must be absolute, unqualified and made while the offer is still open. An acceptance cannot be revoked after it has been communicated. It can be made orally, in writing or implied from conduct (Carlill v Carbolic Smoke Ball). The offer and acceptance must correspond. A counter offer amounts to a rejection of the offer.
LECTURE 1 INTRODUCTION TO THE LAW OF CONTRACT/ AGREEMENT Communication of the acceptance An acceptance must be communicated to the offeror, and the contract is made when the acceptance is received by the offeror. If the post method is used for acceptance it is effective immediately as soon as the letter is posted, provided the letter is properly stamped, addressed and posted. The contract is formed even if the letter is delayed or never reaches its destination.
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