practical contract law
DESCRIPTION
Contract law in practice. Steps and processes.TRANSCRIPT
![Page 1: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/1.jpg)
© Law2020 LLP 2013Practical Contract Law
![Page 2: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/2.jpg)
Consequences of a contract dispute?
![Page 3: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/3.jpg)
Management Time
![Page 4: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/4.jpg)
Management Time
A lot of time!
![Page 5: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/5.jpg)
Stress
![Page 6: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/6.jpg)
Loss of a customer
![Page 7: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/7.jpg)
Loss of a customer
For ever!
![Page 8: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/8.jpg)
Reputational harm
![Page 9: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/9.jpg)
Reputational harm
Loss of more customers?
![Page 10: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/10.jpg)
And Lawyers are expensive
![Page 11: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/11.jpg)
And Lawyers are expensive
Very expensive!
![Page 12: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/12.jpg)
• You have a meeting with Alpha Services, a potential supplier
• You think it is a preliminary meeting
![Page 13: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/13.jpg)
• You have a meeting with Alpha Services, a potential supplier
• You think it is a preliminary meeting
• You discuss the services to be supplied and the price
• You shake hands and leave
![Page 14: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/14.jpg)
• You have a meeting with Alpha Services, a potential supplier
• You think it is a preliminary meeting
• You discuss the services to be supplied and the price
• You shake hands and leave
• Alpha Services then e-mails you saying:
“ I t i s g r e a t t o h a v e e n t e r e d a c o n t r a c t w i t h y o u ”
![Page 15: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/15.jpg)
With which statement do you agree?
There cannot possibly be a contract as it was only a preliminary meeting
There cannot be a contract as we have not agreed all the terms
The may well be a contract
![Page 16: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/16.jpg)
There may well be a contract
![Page 17: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/17.jpg)
There may well be a contract
You might be legally-bound
![Page 18: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/18.jpg)
Offer
Intention
Acceptance
Consideration
What is a contract?
![Page 19: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/19.jpg)
Back to the meeting
At the meetingYou may have both made statementsA court might find that you have agreed certain terms
![Page 20: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/20.jpg)
Back to the meeting
At the meetingYou may have both made statementsA court might find that you have agreed certain terms
A court might identify an offer and an acceptance
![Page 21: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/21.jpg)
Back to the meeting
At the meetingYou may have both made statementsA court might find that you have agreed certain terms
A court might identify an offer and an acceptance
‘Consideration’ is a legal term for an exchange of promisesThe exchange of promises might amount to
consideration
![Page 22: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/22.jpg)
Back to the meeting
At the meetingYou may have both made statementsA court might find that you have agreed certain terms
A court might identify an offer and an acceptance
‘Consideration’ is a legal term for an exchange of promisesThe exchange of promises might amount to
consideration
But did you intend to be legally-bound?
![Page 23: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/23.jpg)
Intention?
In a commercial settingThere is a presumption that you intended to be legally-
boundYou will have to rebut the intention
![Page 24: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/24.jpg)
Intention?
In a commercial settingThere is a presumption that you intended to be legally-
boundYou will have to rebut the intention
But surely you did not agree all the terms?A court may find that you have agreed sufficient terms
for a contract to come into existenceThe court may fill in the gaps
![Page 25: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/25.jpg)
Intention?
In a commercial settingThere is a presumption that you intended to be legally-
boundYou will have to rebut the intention
Buy you did not agree all the terms?A court may find that you have agreed sufficient terms
for a contract to come into existenceThe court may fill in the gaps
So there may be a contract
There may be contract
![Page 26: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/26.jpg)
What should you have done?
MAKE IT CLEAR THAT YOU DO NOT INTEND TO ENTER
LEGAL RELATIONS
![Page 27: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/27.jpg)
These discussions are subject to contract
We do not intend to enter a contract until we have signed a final written agreement
![Page 28: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/28.jpg)
These discussions are subject to contract
We do not intend to enter a contract until we have signed a final written agreement
Minutes of Meeting‘Subject to Contract’
![Page 29: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/29.jpg)
These discussions are subject to contract
We do not intend to enter a contract until we have signed a final written agreement
Follow-up e-mail
and all other
correspondence
‘Subject to Contract’
![Page 30: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/30.jpg)
These discussions are subject to contract
We do not intend to enter a contract until we have signed a final written agreement
DRAFT CONTRACTS
‘Subject to Contract’
![Page 31: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/31.jpg)
These discussions are subject to contract
We do not intend to enter a contract until we have signed a final written agreement
ALLPRE-CONTRACT DOCUMENTS
‘Subject to Contract’
![Page 32: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/32.jpg)
Another example• Alf tells a potential buyer that
“someone else is interested” in a machine that he is trying to sell– This is not true– The buyer purchases the
machine– Alf has made a fraudulent
misrepresentation
– This could prove very costly
![Page 33: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/33.jpg)
• Alf tells a potential buyer that “someone else is interested” in a machine that he is trying to sell– This is not true– The buyer purchases the
machine– Alf has made a fraudulent
misrepresentation
– This could prove very costly
Another example
• In one recent case• Contract value was £48m• Liability cap was £30m• Fraudulent
misrepresentation!• Claim for over £700m• Settled for £319m
![Page 34: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/34.jpg)
Simple steps can prevent problems arising
Train sales people in the
basics
Put simple
processes in place
![Page 35: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/35.jpg)
Simple steps can prevent problems arising
Train sales people in the
basics
Put simple
processes in place
![Page 36: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/36.jpg)
About us
We have been training lawyers and businesses
for 20 years
TRAINING
![Page 37: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/37.jpg)
About us
We have been training lawyers and businesses
for 20 years
We train lawyers and businesses in English law
TRAINING
![Page 38: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/38.jpg)
About us
We have been training lawyers and businesses
for 20 years
We are now designing effective e-learning on
practical contract law to complement our face-to-
face training
We train lawyers and businesses in English law
TRAINING
![Page 39: Practical Contract Law](https://reader035.vdocuments.site/reader035/viewer/2022062418/55626297d8b42ae87d8b4dad/html5/thumbnails/39.jpg)
For more information
www.legalandcommercial.com