CONTRACT

The circumstances in which a breach will allow the innocent party to terminate the contract need to be clear and certain

The circumstances in which a breach will allow the innocent party to terminate the contract need to be clear and certain

Agreement can be formal, informal, oral, written, but some contract must be in writing in order to be enforced. In contract there are express and implied. Express is the one that happened where the term of agreement are directly uttered and avowed at the time of making, and during that time occur pay a stated price for something.

In implied contract is more formal rather than express, it happen such as man employ another to do job to perform any work, the law implies that the former contracted has to pay the value as much as labor work.

Objectives

This essay made to develop understanding of contract as it applies to the practice of architecture. And also to develop what are required to enter a legal contract and how to avoid mistake.

Scope and Limitation

Basically, the essay only explains about the breach of contract, the case in this essay taken from the book of contract law.

Definition of Contract

A contract is an agreement which binds the parties concerned. In other words, a contract is an agreement which is enforceable by law. To have an agreement, there must be an offer and an acceptance to that offer.

Offer + Acceptance = Agreement Formation of Contract

The essence of contract is that there should be an agreement. Parties to a contract must first reach an agreement. To have an agreement, there should be an offer by one party which is accepted by the other party.

For an agreement to be legally enforceable, certain necessary factors must be present. Firstly, there should be an agreement made between the parties that is, and offer and an acceptance of the offer. Secondly, there is an intention to create legal relations. Thirdly is consideration and lastly is the capacity of both parties.

The contract must not be affected by circumstances which tender the contract voidable or illegal.

Therefore,Agreement + Consideration + Intention to create legal relations + Capacity = ContractAgreement

The most important ingredient of contract is that there should be an agreement. Parties to a contract must first reach an agreement. To have an agreement, there must be an offer by one party which is accepted by the other party.

Offer

An offer should be distinguished from an invitation to treat which an invitation o make an offer. An invitation to treat is not an offer which is capable of being turned into a contract by acceptance. An invitation to treat is a mere invitation by one party to the other party to make an offer.

Communication of offer

An offer must be communicated to the offer before it can be accepted. The offer cannot accept an offer unless he knows of it. In other words, the offer cannot intend to accept an offer of which he is ignorant.

Revocation of offer

An offer may be revoked or withdraw at any ...