Chapter 19 The law of contract

Contracts are formed by offer and acceptance where the parties intend to enter into a legal relationship where a promise is supported by consideration. Contracts may be oral or in writing, and the existence or terms of a contract may also be construed from the conduct of the parties. The terms of the contract will be those agreed by the parties but will be given meaning in accordance with established legal principles and may be construed by reference to terms implied by common law or statute. Parties are obliged to abide by the terms of contracts and are able to claim damages for breach of contract to put them in the position they would have been in if the contract had been performed by the other party. Other relief includes injunctions pursuant to which a party may be compelled to perform a contract and declarations, by which the parties’ rights and obligations under a contract may be clarified. Contracts can come to an end by performance of them by the parties, by agreement or by repudiation of the contract by one of the parties that is accepted by the other.