Chapter 3: Contract – Offer and Acceptance
Definition: A contract is a binding agreement between parties in their business transactions and, in
so doing, ensures profits. // An agreement giving rise to obligations which are enforced or
recognized by law.
Consensus ad idem (consensus as to the same thing // a meeting of minds) – What the parties agree
on must therefore be clear and unambiguous. The test towards inferring consensus ad idem is an
objective one.
5 aspects towards contract –
i. Formation (Offer, acceptance, consideration, intention to create legal relations),
ii. Terms of contract,
iii. Vitiating factors,
iv. discharge,
v. remedies
Simple vs Special contracts –
i. Simple contracts can be oral (parol) or written, special contracts are always written.
ii. Simple contracts require some form of consideration, while special contracts do not require
consideration.
iii. Special contracts are usually written in a more formal context, like the grant of a gift/sale of
a property
Parol evidence rule (ss 93-94 Evidence Act) –
