Contracts

A contract can be defined as an agreement between two or more parties to create legal obligations between them'. Some contracts are made 'under seal': in other words, they are signed and sealed (stamped) by the parties involved. Most contracts are made verbally or in writing.

The essential elements of a contract are: (a) that an offer made by one party should be accepted by the other; (b) consideration; (c) the intention to create legal relations.

The terms of a contract may be express or implied. A breach of contract by one party of their contractual liability entitles the other party to sue for damages or, in some cases, to seek specific performance. In such circumstances, the contract may be voided (in other words, it becomes invalid).

In contracts in which goods are sold by sample, a stipulation may be made as to the way and by whom the bulk should be sampled. The contract will also specify the procedure in the event that the goods supplied are not up to sample.