合同法 The Law of Contract.ppt

The Law of Contract The elements of the law of contract Function of the law of contract ENFORCE PROMISESContract law assures the parties to private agreements that the promises they make will be enforceable. Without the framework that the law provides, businesspersons could rely only on the good faith of others to keep their promises. AVOID PROBLEMSThe rules of contract law are often followed in business agreements to avoid potential problems. Function of the law of contract SUPPORT THE EXISTENCE OF A MARKET ECONOMYBusinesspersons can usually rely on the good faith of others to keep their promises, but when price changes or adverse economic factors make it costly to comply with a promise, good faith may not be enough. FREEDOM OF CONTRACT AND FREEDOM FROM CONTRACT FREEDOM OF CONTRACTGenerally, everyone may enter freely into contracts. This freedom is a strongly held public policy, and courts rarely interfere with contracts that have been voluntarily made. FREEDOM FROM CONTRACTIllegal bargains, agreements unreasonably in restraint of trade, and unfair contracts between one party with a great amount of bargaining power and another with little power are generally not enforced. Contracts are not enforceable if they are contrary to public policy, fairness, and justice. Definition Before there can be a valid contract there must be a meeting of minds i.e. Consensus ad idem contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: A promise or set of promises which the law will enforce. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default. CLASSIFICATION Contracts may be divided into two broad classes: 1. Contracts by deed  A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of