Privity of Contract - Law of Contract - Lecture Slides, Slides of Contract Law

Download Privity of Contract - Law of Contract - Lecture Slides and more Slides Contract Law in PDF only on Docsity! What the Law of Contract Does?  A contract is a legally binding agreement.  An agreement which "the state (China) or region (HKSAR)" will not recognize is not a contract.  The law of contract in Hong Kong is based on and similar to English law but it is not identical. Docsity.com  Most of Hong Kong's contract law is found not in legislation but in the reported decisions of the courts in Hong Kong and other common law jurisdictions.  The first question is "Is there a contract?" That is a question of law (Common Law, Case Law), which depends on the intentions of the parties as decided by the Court, on the evidence (on the balance of probability). Docsity.com How are contracts made ?  Intention Commercial agreements are presumed to be intended to be contracts. Family and social agreements are presumed to be intended not to be contracts. Docsity.com Whether the parties have agreed is first a question of fact - of evidence - then of law - of construction -- that is interpretation of the meaning of the facts. A contract is created only when both parties have shown a willingness to be bound by contract on terms agreed between them. Agreement is usually proved by showing acceptance of an offer. Docsity.com Offer The proposal of a contract is called an offer, which is the offeror's manifestation of willingness to be bound to the offeree in contract, in the terms of the offer. An offer gives the offeree power to make a contract by accepting those terms. Docsity.com Acceptance  Acceptance is the manifestation by an offeree of willingness to be bound by a contract in the terms of the offer.  Acceptance may be by written or spoken words, or by conduct, or by any mixture of those methods. Docsity.com The offeror may stipulate the method of acceptance. Upon acceptance of the offer, the contract comes into existence on the agreed terms. Acceptance is effective when communicated or signified in the way stipulated, expressly or impliedly, by the offeror. Docsity.com  If the offeror has signified a willingness to take acceptance by letter or telegram, acceptance will be effective when the letter is posted or the telegram dispatched.  Telexes, fax messages and telephoned acceptances take effect according to the general rule, i.e., when communicated. Docsity.com Past consideration is no consideration. Consideration may be executed or executory. Executory consideration is a return promise in the future. Executed consideration is an act for which the promise was given. If the consideration is a promise to pay an unfixed sum, a later promise to pay a fixed amount is supported by consideration Docsity.com A promise to perform an obligation already owed to a third party is good consideration. A promise to perform a public duty is good consideration unless it would be against public policy to enforce it. A promise to perform a duty already owed in contract to the same promisee may be good consideration provided there is no unfair pressure amounting to economic duress. Docsity.com Formality No formalities are usually required, but for the sale or other disposition of interests in land. (Note & Explaint "deeds" and "contracts") An unenforceable contract is one which the court may recognize but will not enforce. Effect of Stamp Duty Docsity.com Privity of Contract A contract may suffer from different kinds of flaws, providing different remedies: fraud, misrepresentation (innocent or negligent), duress, undue influence, mistake, illegality. or incapacity of a party. Docsity.com  Only a party to a contract can sue on it.  The holder of a negotiable instrument may be able to sue on it though not originally a party to it. Docsity.com Remedies Some contractual rights can be assigned. Contractual obligations cannot. If a contract is broken, a disappointed party may do nothing, negotiate, use self-help, seek arbitration or mediation, or sue. Remedies provided by the court include actions in debt, for the price, for damages, for injunction and for specific performance. Docsity.com