LAW200 Notes - Zayed University PDF

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ZAYED UNIVERSITY ABU DHABILAW200 NOTESIntroduction To Contracts Contract: Legally enforced agreement between parties to do or not to do something. 6 Elements Of A Valid Contract: Oer - specic details of what will be provided. Specic Oer; oer made specically for person B. General Oer; oer made for an...

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ZAYED UNIVERSITY ABU DHABI LAW200 NOTES Introduction To Contracts -

Contract: Legally enforced agreement between parties to do or not to do something.

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6 Elements Of A Valid Contract:

1) Oer - specic details of what will be provided. -

Specic Oer; oer made specically for person B. General Oer; oer made for anyone, ex: 100dhs for whoever nds my dog. Valid Oer; must be communicated + a legal relationship not only by “verbal promise”+ clearly distinguished between invitation or oer. Termination of an oer - lapse of time, proper withdrawal, death of person or object, counter oer.

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Acceptance - agreement by the other part in full. Can be verbal or written. Signature is sucient. Party must agree with the oer without any changes. If a party sends a counter-oer, the acceptance of the original oer is not valid. Only the recipient of the oer can agree to accept. Party must be aware of the oer before accepting it. Can’t remain silent, much reject or accept. Must communicate with the oering party, or there will be no legal relationship. Oering party must receive the acceptance in an agreed-upon manner. Must accept an oer within the prescribed timeframe or it will be void. Party oering can revoke the oer, the oer will “die”. If a party rejects an oer, it can not be accepted later on.

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Consideration - the exchange of interest between the parties; ex: car/ money. Legal denition “bargain for exchange” concept. Consideration can be a promise, ex: you can contract w someone to not do something. Consideration can be in the past (fatima gives money to alia because she saved her from a delayed bill last month/ present (cash sales)/ future. Consideration need not be adequate but sucient. Price is between seller and buyer, ex buying a ferrari for 1 dhs. In the eyes of law it's okay as long you are both accepting the trade/ price. A contract that lacks consideration is invalid. Should be real and not illusionary, ex: should be actually possible.

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Should not be something the party is already bound to do; ex “i will stop at the red light if you pay me 100”. Giving a gift cannot be a consideration. Past consideration is no consideration. Consideration can’t be illegal or against policies. If a party fails to provide consideration, the party can cancel the contract, or when its worth less than promised, or even broken. It's a rule that if parties want to modify their contract, there must be new consideration for it to be binding (essentially, a new contract).

There must be an exchange. Even if it was promised before, as long as there was some sort of exchange of consideration, that “promise” is valid. 4) Capacity - ability/ competence for parties to be able to sign; ex: age/ mental ability. - Person can perform the act they agree to in the contract. - Must be competent/ eligible. - This who can’t enter a contract: People who are minors People who are insane/ mentally-ill People who are under inuence of drugs or alcohol People who are bankrupt Important: If these people entered a contract, they must have options to choose from to leave, like disarming the contract. A contract cannot be signed by a minor unless the contract concerns providing the necessities for life for the minor (food, clothing, shelter)...etc. If a minor reaches maturity while in the contract, they must ratify any contracts in which they are a party. Any contract with a minor is void/ invalid and cannot be enforced by law. It’s illegal. Hessa is a minor who signed for 8 months rent with Alia. She was a minor for 2 months and became an adult in the 3rd month. If hessa leaves in the 3rd month, she doesn’t pay a penny. If hessa stays she has to pay back when she stayed because she ratied (approved) the contract. A convict cannot sign a contract, because he/ she is in jail. She can after she/ he leaves. An insolvent person is someone who is bankrupt or has no nances, this person cannot enter a contract.

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Intent - both parties carry out their promise. Terms are certain and not vague. Must have intention to create legal relations. Complete agreement, does not need further development or clarication. Agreement will be binding and be able to to be enforced in court. Most evident in domestic and social agreements that are out of boundaries of the law ex: I will host the party, and fatima will bring the food. Domestic and social agreements do not intend to create legal relationships. Commercial agreements are legal relationships because the intention is to make the contract or agreement legal. An enforceable contract needs to have certainty and clarity of terms and details. A statement cannot be an oer unless it is suciently certain. SELLING CAR TO BROTHER is a commercial contract. Domestic and social is for silly stu, but if it's a serious oer even between family you can say it is commercial. A contract must have completeness.

6) Legality - the purpose/ object of a contract is not against any laws/ policies. - All contracts must have a legal purpose with a legal oer. - Example: A contract of insurance to cover losses caused by the insured’s own arson is illegal and contrary to public policy (unenforceable).

- Contract concepts: ➢ Bilateral contract - most basic/ common legal agreement between parties. ➢ Unilateral contract - one side to make a promise; ex: reward for nding missing dog. Unilateral becomes Bilateral when fulfilled’ ex: dog for money, vice versa. Unilateral does not require acceptance, only performance. ➢ Valid contract - contract fullls all 6 elements. ➢ Void contract - one or more of the 6 elements are missing, it’s invalid. ➢ Express contract - terms/ conditions are clearly stated verbally/ written. ➢ Implied contract - terms/ conditions are not written, but are inferred (obvious) by the actions of the parties involved.

Meeting of minds/ mutual consent is necessary for a valid contract! -

Must have common intentions. “Consensus Ad Idem” : meeting of minds in fullling the oered obligation. There must not be any pressure, force, or threat to consent.

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Consent must be voluntary, and not caused by inuence or fraud - should be genuine. Consent: oering the party an opportunity to exercise her willingness to the contract.

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“Free/ true consent”: consent without degrading factors like inuence or fraud. Every free consent is consent, every consent is not a free consent.

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“Duress”: One party forces the other party to consent unlawfully or by pressure/ threat. Duress in a contract results in a void contract.

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Duress is only a physical threat ex: i will kill your child. But if “sign or i will be upset” is not a duress.

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Undue inuence is when party A is inuencing party B to make the contracting pretending that it will benet them, when in reality it will benet party A. Undue inuence happens without violence.

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Undue inuence may happen when there is any relationship between the parties. Fiduciary relation is when one party holds a position of dominance over the other.

- Fiduciary relation has essential elements of trust and condence. Ex: dad and daughter. Misrepresentation: - False statement of facts/ inaccurate information from one party to another to make them -

sign a contract. If Party B does get inuenced into signing by false information, they can void the contract

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or seek damages. Even accidentally representing false facts can hold liability (especially when that part is

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legally responsible for knowing about inaccuracies). In some countries, misrepresentation falls into the subcategory of frauds. There are types:

Innocent misrepresentation - party A genuinely believed that the fact is true Fraudulent misrepresentation- party A says false facts on purpose, ex: faking a degree just to get hired. Negligent misrepresentation- Statement maker is careless about facts, ex: doctor. Party B suers from that information because they were reliant on it....