contract lesson plan

1. Simple Contracts by P. Brown

2.  a social agreement between two or more
parties which sometimes may not be legally
binding.

3.  A contract is a legally binding agreement that
is enforceable by law.

4.  All contracts are agreements, but not all
agreements are contracts.
 This means that some agreements are not legally
binding.
 The law sees all domestic agreements as not
legally binding and thus the court expects the
relative or friend to prove that he/she did intend
to create legal relations.

5. ◦ Simple contract
◦ Specialty or speciality contract
◦ Contract of record

6.  A simple contract is one made by two or more
persons which must have consideration as an
important feature of it.

7.  Offer Consideration
 Acceptance

8. Offer and acceptance of that offer
Form or consideration
Capacity
Legality
Possibility
Genuineness of the parties to enter into a
contract
Good faith

9.  An offer is a proposal or a bid made by one
party to another either directly or through an
agent.
 For an offer to be genuine it must be made by
the offeror.
 An offeror is the person making the offer or
the agent who represents him.

10.  An offeree is the person accepting the offer.
 An offer can be oral, implied by conduct or
put in writing. Note that a simple contract
need not be in writing.

11.  An offer must be communicated to the
offeree .
 It must be clear and precise and can only be
revoked or withdrawn before acceptance by
the offeree.

12.  This is when the offeror invites the offeree to
make him an offer which may be either
rejected or accepted.
 This is not a genuine offer because an offer
must be made by the offeror.

13.  Goods displayed in a store or a supermarket
with a price tag attached.
 Goods offered for sale by public tender.
 An advertisement inviting tenders for goods.

14.  In law an acceptance is achieved when the
offeree unconditionally agrees to all the
terms and conditions of the offer.
 It must be noted there must be a genuine
offer made and not an invitation to treat,
otherwise the acceptance is invalid.

15.  An offer must be communicated before it is
considered as legal.
 An acceptance must be unconditional- the
offeree must not change any of the
conditions of the offer. Must be done in the
manner stated.

16.  An acceptance must be unqualified – the
offeree must measure up to the expectations
of the contract and not seek to change it.
 An acceptance must also be absolute – all
the terms and conditions must be agreed on
totally and the offeree should not desire to
change any aspect in his favour. Must be
accepted within the stipulated time.

17.  Once the offeree changes the terms of the
agreement this is a counter offer and is
equal to a rejection of the original offer.
 An offer made through the post office is
effective once the letter is posted. It does not
matter if the letter was delayed or lost in the
post.

18.  An offer made through the phone, fax
machine or any instantaneous means of
communication is complete only when
received and not transmitted.

19.  Paul and Paula work with the same
accounting firm. Paul promised Paula to
take her to work every Monday morning
when her husband uses the family car out
of town. Paul did not turn up one Monday
morning so Paula was extremely late for
work and her supervisor was very upset.

20. ◦ Paula reported Paul to the boss hoping
that he too would be reprimanded. Paula
decided to take Paul to court for breach of
contract.
◦ Advise Paula if she had a contract with
Paul in the first place.
◦ If she takes Paul to court, what will be the
likely outcome?
◦ What is the difference between a contract
and an agreement?

21.  Abiraj, BMC. (2006). Principles of business for
CXC. 5th ed.
END OF LESSON