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LAW OF CONTRACT

(COURSE CONTENTS)

The law of contract regulates contractual obligations and rights of parties to an agreement. This course is designed to provide comprehensive knowledge of the subject matter as it relates to commercial transactions and other contractual relationships.

 

It covers the following topics as outlined below.

 

1. NATURE OF CONTRACT

Meaning of Contract

Freedom of Contract

Concept of Bargain

Classification of Contract

(a) Written Contract

(b) Oral Contract

(c) Formal Contract

(d) Simple Contract

(e) Express and Implied Contract

(f) Bilateral and Unilateral Contracts

 

Essence of the Law of Contract

 

2. FORMATION OF CONTRACT

Elements of a Valid Contract

Offer

(a) Characteristics of a Valid Offer

(b) Invitation to Treat

(c) Termination of Offer

 

Acceptance

(a) Invalid Acceptance

(b) Modes of Acceptance

(c) Revocation of Acceptance

 

Consideration

(a) Types of Consideration

(b)Rules Governing Consideration

(c) Improved Approaches to Consideration

 

Intention to Crate Legal Relations

(a) Domestic Agreements

(b) Social Agreements

(c) Commercial Agreements

(d) Collective Agreements

 

3. CAPACITY TO CONTRACT

Introduction

Infants

Categories of Contract by Infants

(a) Voidable Contract

(b) Valid Contracts

(c) Void Contracts

Illiterate Persons

Contract by Illiterate Persons

Limits to the Applicability of the Illiteracy Laws

Corporations

Unincorporated Associations

Lunatics

Insane and Persons of Unsound Mind

Drunken Persons

 

4. TERMS OF A CONTRACT

Introduction

Express Terms

Implied Terms

Conditions, Warranties and Innominate Terms

Restrictive Covenants, Contracts in Restraint on Trade

Exclusion (Exemption) Clauses

 

(a) Exclusion Clauses and the Consumer

(b) Exclusion Clause and Business Parties

 

5. REPRESENTATION

Representation and Terms

Unfair Terms and Exemption Clauses

Nature of Contractual Terms

(a) Condition Precedent and Subsequent

(b) Conditions and Warranties

(c) Innominate Terms

(d) Implied Terms

 

6. VITIATING ELEMENTS OF A CONTRACT

Introduction

Mistake

(a) Types of Mistake

(b) Effects of Mistake in Equity

 

Misrepresentation

(a) Innocent Misrepresentation

(b)Fraudulent Misrepresentation

(c) Negligent Misrepresentation

(d) Remedies for Misrepresentation

 

Contracts Uberrimae Fidei

(a) Contract of Insurance

(b) Contract to Purchase Shares in a Company

(c) Contracts of Family Arrangement

(d) Contracts for the Sale of Land

(e) Contract in which a Fiduciary Relationship Exists Between the Parties

 

Duress

(a) Duress at Common Law

(b) Economic Duress

Undue Influence

 

7. ILLEGALITY AND UNENFORCEABLE CONTRACT

Introduction

Meaning and Classification of Illegality

(a) Contract Rendered Illegal at Common Law

(b) Contracts Rendered Illegal by Statue

(c) Contracts Rendered Void at Common Law

(d) Contracts Rendered Void by Statutes

 

Consequences of Illegal Contracts

(a) Void Contracts

(b) Illegal Contracts

(c) Recoverability of Money or Property Transferred under an Illegal Contract

 

8. PRIVITY OF CONTRACT

Meaning and Nature of the Doctrine

Operation and Application of the Doctrine

Rationale and Criticisms for the Doctrine

Reform of the Doctrine

Privity of Capacity

Privity of Contract and Agency

 

9. DISCHARGE OF CONTRACT

Introduction

Discharge by Agreement

Rescission

(a) Executory Contract

(b) Contract Required to be in Writing Variation

 

Waiver

Accord and Satisfaction

Discharge by Performance

(a) Substantial Performance

(b) Partial Performance

 

Discharge by Frustration

(a) Theories of Frustration

(b) Application of the Doctrine of Frustration

(c) Legal Consequences of Frustration

 

Discharge by Breach

(a) Repudiation

(b) Fundamental Breach

(c) Effect of Discharge by Breach

 

10. DAMAGES

Introduction

Categories of Damage

(a) Nominal Damage

(b) Contemptuous Damage

(c) Punitive or Exemplary Damage

(d) General Damages

(e) Special Damages

(f) Liquidated Damages

(g) Unliquidated Damages

Penalties

 

11. REMEDIES FOR BREACH OF CONTRACT

Introduction

Equitable Remedies

Rescission

Damages

(a) Remoteness of Damage

(b) Measure of Damages

(c) Mitigation of Damages

 

Quantum Meruit Claims

Specific Performance

(a) Where Damages are Hard to Quantify

(b) Discretionary Nature

(c) Contracts Not Specifically Enforceable

(d) Contract Requiring Constant Supervision

(e) Vague Contract

(f) Building Contracts

(g) Contract Enforceable in Part

(h) Terminable contract

(i) Promise Without Consideration

Injunction

 

Extinction of Remedies

Quasi Contract

(a) Money Paid under a Mistake of Fact

(b) Money Paid under Ineffective Contract

(c) Money from a Third Party

(d) Claims against Wrongdoer

(e) Money Paid to the Defendant’s Use

(f) Compromise