Contracts Exercise

Contracts Exercises

A Contract is a legal binding obligation created under an agreement between two or more persons that is enforceable by law . A contract is made valid by the following factors : there must be an offer and an acceptance , there must be an intention to create legal relations , the contract must be under deed or consideration , there must be a contractual capacity , a genuine consent which must not be obtained from mistake , fraud , duress and unconscionability and lastly the contact must be lawful

In this case of where the intention

of the contract was to build a new road tunnel so as to reduce the traffic jams on the roads around the Paramatta River and Homebush . In this contract , Joe should know that there existed no consideration among the parties in agreement whereby legally , consideration is an agreement between two parties , in which the agreement must have some value in the eyes of the law , whereby a bare promise is not binding unless it is in the form of specialty contract therefore consideration is an act of promising of one party , whereby the promise is brought by the other party and is enforceable by law Therefore Joe should know that for a contract to be binding legally it must be supported by consideration , in which there is a following benefit to both the parties

In this case there was a substantial performance under which the law provides that where a party in a contract gives up work when only part of it is done , under this he is not entitled to recover any sum for the work completed but if the party completes his contract and it falls under below the contractual specifications then he can recover the price , but the defendant can claim a deduction for the cost of rectifying the defects . As in this case where the contract was to go for twenty years , the construction failed whereby his complaint is that TMC provided Digi-tags on the SBC 's buses that didn 't work well in which they are receiving fines each day for the unpaid tolls . This is also represented in the case of Dakin v Lee 1916 . In this D a builder substantially completed his contract but some of the workmanship proved not in accordance with the specifications . L refused to pay anything on this ground . It was Held that the plaintiff could recover the contractual price less the amount required to rectify the defects in the building

In legal advances there exist the Assignment of Rights and Delegation of Duties rights under this a contract may be assigned and the assignee is able to demand performance from the other party , in the case where the other party fails to perform his obligations the assignee can sue him in his own name . This assignment normally takes place in one of the following three ways

Legal assignment- under this the assignment must be in writing by the assigner absolute and not by way of charge and...