do you know your rights - starter definition of a contract: definition: a legally binding...

CONTRACTS:

Do You Know Your Rights - Starter

Definition of a Contract:

Definition:

A legally binding agreement, giving rights and obligations to the people involved, which the law recognises and will uphold

A Valid Contract:

Must Consist of 6 Points

1. It must be serious and commercial 2. Offer and Acceptance must be Present 3. Exchange must occur 4. People must have Capacity 5. Consent must be Freely Given 6. The Activity must be Legal

1. It must be Serious and Commercial:

Making a purchase from a shop, or buying a house would be the best examples of serious and commercial transactions.

Discussion

2. Offer and Acceptance must be present: Someone makes an offer – if you accept it,

this means you have entered a binding contract.

Example – I go the farmers market and barter about some eggs – She offers me the price of $2, I say yes and agree to the price.

Discussion

3. Exchange must Occur:

People must exchange something of value

You “Consider” how much something is worth. “Consideration is the key word.

Example – John fixes Jill’s Car. John’s mechanical abilities is his consideration. Jill pays John $400 for his work. The $400 is the consideration Jill pays.

Activity

Cloze Activity – Contracts

4. People must have “Capacity”

A person must have the ability at the time of entering a valid contract to fully understand what is happening.

Example – The person cant be drunk during signing a contract.

Discussion!!!

5. Consent must be Freely Given The people involved in a contract must

freely agree to the terms of contract

Example – You go to a store to look at buying a new TV – the attendant threatens to beat you up if you don’t buy this TV.

6. The Activity must be Legal: Courts will only support a wronged

person if the activity the contract involved in is legal.

Examples