LAW OF CONTRACT

Nature of contracts
• * A contract is a legally binding
agreement, i.e. one that will be
enforced by the courts.
• * Everyday domestic agreements are
not usually intended to be legally
binding, and are therefore not
contracts.
* In a contract there must be consensus ad
idem (“agreement on the same thing”), i.e.
the contracting parties must agree to
identical terms.
* Agreement arises from offer and
acceptance, but to be enforceable at law a
number of other elements must be
present