THE VALIDITY OF CONTRACT, PERFORMANCE OF CONTRACTS

What is the definition of a contract?

At its most basic level, a contract is simply an agreement between two or more
parties that defines the terms of an exchange. A contract can be written or
verbal, and both are legally valid in the right circumstances, but some, like
real estate purchase contracts, are legally required to be written.

A contract, in its simplest, is a promise or written instructions enforceable by

law that guide an agreement between two parties. Usually, the underlying
instructions under the contracts allow the parties involved to do what is
expected to keep the contract alive. From the start, making a contract requires
sound and mutual consent from all parties involved. In this sense, one party
must have something to offer, and the another must to be willing to accept the
offer.

A contract is an enforceable promise. As we will see, a contract needs

consideration in order to make a promise enforceable. Essentially there
needs to be a mutual give and take between the parties. The differences
between contracts and promises is therefore that promises are not legally
enforceable only moral obligations arise in contrast a party can enforce a
contract in a court of law if necessary.
Assumption: You walk into your dry cleaners, and you drop off your suits and the
person behind the desk gives you a receipt, that receipt is also a contract
because they expect to get paid and you expect to paid them, and so it goes.

That is a contract.

Why do we need contracts?

Contracts are needed for a number of reasons. In many contracts, there is a
gap between the point where a promise is made and the point where the
action that was promised needs to be carried out. Having a contract makes the
terms of an agreement clear from the beginning. For minor agreements like
lending your neighbour a hammer, a contract isn't necessary. However, for
something of significant value, like the sale of a property, things can get messy
if there is no valid contract in place.. Contract law promotes certainty and
predictability, helps individuals and businesses to plan ahead and form
reliable secure and enforceable commercial relationships.

Types of contracts
There are a different types of contracts namely with regards to how they are
formed and what extend they are enforceable between the parties. we have six
different types of contracts.

_unilateral contract: In unilateral contract, there is one party that makes a

promises while the other party performs an act. For example, Jose promises to
pay George 10yuan if George cleans Jose’s driveway, if George cleans the
driveway, the money is owed. Jose made a promise, George did not promise
anything.
_bilateral contract: conversely in a bilateral contract both parties promised
something. In our previous example, Jose still promises to pay George 10yuan
for cleaning his driveway but now because the contract is bilateral, George at
the same time promises to clean the driveway in return for Jose’s promise of
payment.

_express contract and implied contract: express contracts are created by

the express words or writings of the parties, they include the terms and
remedies as defined in the contract, conFversely implied contracts are created
by actions, by conduct and by circumstances.

CONTRACT CAN BE

EXPRESS TERMS IMPLIED

TERMS WRITTEN
TERMS TERMS NO
TIN THE
WRITTEN TIN
AGREEMENT
THE
AGREEMENT

ORAL STATEMENTS WRITTEN TERMS OPERATION OF THE

Example: Example ,BROC COMMON LAW
COMMUNICATIO HURE&EMAIL OPERATION OF
example: EMPLOYERS
N &NEGOTIATION STATUS
HAS A DUTY OF CARE
example:SALES OF
TO TAKE CARE OF HIS
[Link] GOOD
EMPLOYEES HEALTH
ARE OF
SATISFACTORY
QUALITY
_quasi contract: Technically the concept is used as a remedy by courts to
avoid unjust enrichment, treating a relationship as having established, quasi
contract allows a court to force a party to compensate another party for the
reasonable value of your services or goods that have been received.

_ promissory estoppel: this contract is related to quasi contracts, it is a remedy

used where one party has reasonably relied upon a promise made by another
party and due its reliance suffered a detriment because the promise was
broken. In those cases, a promiser that is the party that made the promise
maybe liable for reliance damages.

Determination of the validity of contracts

A legal contract can be defined as a set of promises from all parties and, upon
breach, can be enforced by law. In most case, a contract is scaled through
signing documents that describe terms and conditions that must kept
throughout the engagement. Upon agreement, the two parties are expected to
abide by the engagement’s terms and conditions. There are three elements
necessary to form a contract, we have the offer, acceptance and consideration.

_A valid offer must to be communicated to the offeree, the power of acceptance

must be given to the offeree and be willing to be bound by an acceptance

_An acceptance must: to be communicated to the offer, to be in compliance

with any instructions in the offer relating to the manner and the method of
acceptance
_consideration: An order to be a legal contract, most contracts require
consideration. Consideration is known as a bargained for exchange or
something of legal value.

Performance of contracts
Meaning and Definition of Performance of Contract

• The term 'Performance of contract' means that both, the promisour, and the
promise have fulfilled their respective obligations, which the contract placed
upon them.

• For instance, A visits a stationery shop to buy a calculator. The shopkeeper

delivers the calculator and A pays the price. The contract is said to have been
discharged by mutual performance.

Performance is the usual manner in which contracts end, it is the “happily

ever after” of contract law. For example, In a contract to sell a frog, the boy
performs when he surrenders the frog to the girl. The girls performs when she
gives the boy 5yuan. Sometimes a condition affects contractual performance
as condition precedent( a condition that must first occur for a contractual
obligation to attach),concurrent conditions (conditions that occur at the same
time).

Conclusion
Contracts are everywhere, not just some huge formal agreement between
large corporations, but also an agreement or mutual consent between two
parties. You go into a parking garage. They give you a stub. That is a contract
because they are going after your car and you are going to pay them. But for a
valid contract, it must have an offer, acceptance and consideration. Terms of
contract can be express, implied, oral statements and written terms.