Contract Practice Overview

Question 1

What elements must be in place for a Contract to be formed?

Answer 1

Capacity - people signing to be of sound mind

Intent - clear intention for both parties to do business together

Consideration - anyone reason can see benefits each party will receive

Lawfulness - obligations of those performing the contract must be legal

Offer - contract needs to explain nature of offer and demonstrate what is to be exchanged

Acceptance - clear acceptance shown by signatures

Clarity of terms - avoid breach of contract for either party, agreement must create certainty of its essential terms

Question 2

What happens when ‘time is at large’?

Answer 2

• MC hasn’t fulfilled their obligation to meet practical completion
• A certificate of non completion hasn’t been issued
• Means there is no set completion date
• MC has obligation to complete works in ‘reasonable time’
• LADs cannot be claimed
• Employee to prove MC hadn’t completed in reasonable time

Question 3

What is Frustration?

Answer 3

• Occurs when any event or circumstances beyond control of both parties changes the contractual obligations or makes it illegal for them to fulfil their contractual obligations
• Automatically discharges contract