Chapter 7Contract Law
Chapter 7 Contract Law
How to get to a contract?NegotiationyesAgreement?noFormationofacontractOffer&acceptanceyesnoCapacity?yesnoValidityofacontractVoluntary?No(perfect)Contract!yesnoLegality?yesnoWriting required?Contract!
Agreement? Offer & acceptance Capacity? Voluntary? Legality? Contract! No (perfect )Contract! yes yes yes yes yes no Negotiation no no no no Writing required? How to get to a contract? Formation of a contract Validity of a contract
Case:For example,assumethatAandBhave beennegotiating overthe sale ofB'srestaurant.AconfidesinhisfriendCthatheplansto offerBRMB150,000fortherestaurant.CgoestoBandtellsBthatAhasdecidedtoofferhimRMB150,000fortherestaurantandhasdrawnupawrittenoffertothateffect.AfterlearningthedetailsoftheofferfromC,BtelephonesAandsays,“Iacceptyouroffer."Question:IsAnow contractuallyobligated tobuytherestaurant?oNo.BUSINESSSeeCommunicationforSALERESTAURANT
Case: For example, assume that A and B have been negotiating over the sale of B’s restaurant. A confides in his friend C that he plans to offer B RMB150,000 for the restaurant. C goes to B and tells B that A has decided to offer him RMB150,000 for the restaurant and has drawn up a written offer to that effect. After learning the details of the offer from C, B telephones A and says, “I accept your offer.” ◦ Question: Is A now contractually obligated to buy the restaurant? ◦ No. ◦ See Communication
LearningobjectivesOncompletionofthis chapter,students shouldbeableto:Understandthe concept and significanceofa contract;Comprehendtheprocessofcontractformation;Recognizethefactors influencing thevalidity ofa contract;。Understandhowthecontractisperformed;Knowthewayshowacontractisterminated;Demonstratetheliabilityforbreachofa contract
Learning objectives On completion of this chapter, students should be able to: ◦ Understand the concept and significance of a contract; ◦ Comprehend the process of contract formation; ◦ Recognize the factors influencing the validity of a contract; ◦ Understand how the contract is performed; ◦ Know the ways how a contract is terminated; ◦ Demonstrate the liability for breach of a contract
Contents7.1IntroductiontoContracts7.2FormationofContracts7.3ValidityofContracts7.4TerminationofContracts7.5BreachofContracts
Contents 7.1 Introduction to Contracts 7.2 Formation of Contracts 7.3 Validity of Contracts 7.4 Termination of Contracts 7.5 Breach of Contracts