Most commercial disputes reduce to two questions: was there a contract, and what did it require? Both are answered by returning to the essentials of a valid agreement.
These notes set out those essentials, the categories of agreements the law refuses to enforce, and the remedies available on breach.
Contents
- Offer, acceptance and communication
- Consideration
- Capacity to contract
- Free consent: coercion, undue influence, fraud, misrepresentation, mistake
- Lawful object and void agreements
- Performance and discharge
- Breach and remedies
Key concepts
- Consideration
- Something of value given in return for a promise. An agreement without consideration is, as a rule, void.
- Free consent
- Consent not caused by coercion, undue influence, fraud, misrepresentation or mistake; its absence usually makes the contract voidable.
- Void and voidable
- A void agreement has no legal effect at all; a voidable contract is valid until the affected party elects to set it aside.
- Damages
- Compensation for loss naturally arising from the breach; remote or speculative loss is not recoverable.
- Specific performance
- A direction to perform the contract itself, granted in the discretion of the court where damages are inadequate.
Topics covered
- Formation of a binding agreement
- Vitiating factors affecting consent
- Agreements declared void by statute
- Measure of damages on breach
- When specific performance is granted
These notes are educational material prepared for general understanding of legal principles. They are not legal advice, are not exhaustive, and must not be relied upon in place of professional advice on a specific matter.