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《contracts and marketing》.ppt
* * * * * * * * * * * * * * * * * * * Contracts and marketing The Law of Contract To be legal, a contract must contain the following elements: 1. Offer:?An offer is a promise by the person making the offer to be bound by the contract if the offer is accepted. Note that an invitation to treat (e.g., a notice in a shop window) is not an offer as it only invites the consumer to examine the goods.2. Acceptance:?Every offer must contain an unqualified acceptance of the offer, which means accepting the offer as it stands.3. Consideration:?This is what is exchanged between the parties to the contract (money, goods or a promise to pay).4. Real consent:?The two parties must voluntarily agree to all the terms of the contract. There must be no duress or undue influence.5. Intention to contract:?The courts will assume that agreements between family and friends are not intended to be legally binding whereas business arrangements are assumed to be legally binding.6. Capacity to contract:?Not everyone has the ability to enter contracts, e.g., an incapacitated person, a legal infant or a company acting ultra vires, i.e., acting beyond its objectives.7. Legality of form:?Certain contracts to be legal must be drawn up in a particular manner, e.g., a hire purchase contract must be written.8. Legality of purpose:?A contract must not be illegal. Termination of a contract ?may be achieved by the following means: Performance:?When the parties to the contract fulfil their obligations as agreed. Agreement:?When both sides agree to terminate even though the contract is incomplete. Frustration:?When an unseen event (e.g., death) prevents the contract being completed. Breach:?When a condition (an essential term of the contract) is broken the innocent party does not have to fulfil the contract and may sue for damages. If a warranty (a non-essential element of the contract) is broken the contract remains valid but the innocent party may receive damages. The?remedies for breach
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