Lecture 2 – Offer & Acceptance Principles of contract law:

Contract

Formation - How a Contract is Made

Terms - The Substance of Contract

Vitiating Factors - Factors which Undermine a Contract

Discharge - How a contract is fulfilled or ended

Remedies - The Cures for a Breach of Contract

For a contract to be legally binding, it has to fulfill 4 key elements: 1. Offer 2. Acceptance 3. Consideration 4. Intention to create legal intentions A. TYPES OF CONTRACT (pg 60) • Simple Contacts o Written o Oral • Special Contracts o Contracts by deed or contracts under seal o Always in writing o Written document is called a deed o Contracts under seal do not require consideration to be enforceable Written and Oral Contracts (pg 60) (1) Oral Contracts (Parol Contracts) o Difficult to ascertain the precise terms of the contact in event of dispute (2) Written Contact o Useful as it provides evidence of the parties’ contractual obligations o Forefront Medical Technology (Pte) Ltd v Modern Pak Pte Ld (2006) o Contracts for certain transactions must be evidenced by a written note of memorandum otherwise they are unenforceable  Eg. Assignment of copyright and transfer of real property # NOTE: Parol Evidence Rule Primacy of a written agreement over oral statements : Oral (Parol) evidence will not be admitted in a court action to add to , vary, amend or contradict a written contract - Evidence Act S94 – Engelin Teh Practice LLC v Wee Soon Kim Anthony (2004) *Exceptions*: Extrinsic evidence can be used if words of written contract were ambiguous B. 1ST ELEMENT OF CONTRACT - OFFER (pg 63) : Expression made by one party (offeror) to another party (offeree) communicating that offeror’s willingness to perform a promise, with the intention that, upon acceptance by offeree, a binding agreement is formed • Offer can be made in writing, orally or by conduct • Can be made to to