contracts


a contract is an agreement between two or more parties.

it may involve a written document with both/all parties sign.

a contract may also exist in other situations such as a client requesting work or supplies from a supplier.

it must involve transfers in both directions, a gift or a promise of a gift is not an enforcable contract.

if one side of the agreement does not fulfill the agreed terms, the other party may apply lodge an action in a court. 
	The court would generally order a financial payment in compensation for failure to fulfill the contract terms.
	The court may also order that the original work specified be completed (specific performance).

contracts only apply to commercial situations (business transactions, money), not personal siutations

if a party is forced to sign a contract, it does not form a legally binding contract (duress).

a contract is also not valid if one party is under 18 years of age, intoxicated, or mentally incapacitated. Possibly enforcable against the other party however.


a contract is formed by a clear offer by one party, and agreement to the offer by the other party.

an offer can be cancelled at any time before acceptance has been announced. if the other party agrees to the terms it is then too late to cancel the offer.

the offer must specify the terms e.g. items, price, not just involve a general statement. (e.g. an agreement to sell item X [not complete], to sell item X for 80M [specific]).

a contract can be abandoned if all parties agree to that.




party

an individual person or a company, an entity with the power to own assets in their name and engage in contracts. (not a trust)
	e.g.  GJS Ltd. as trustee for XYZ (ok), trust XYZ (not a legal entity).



notes

contracts are not generally necessary for a direct exchange of items, only where a transaction occurs on a future date, or has several different parts that occur at different times.



example

an agreement to sell asset X for $80K on the 23July2010.




Based on the law of Australia. Year 2010.