VISVESVARAYA TECHNOLOGICAL UNIVERSITY JNANA SANGAMA,
BELAGAVI – 590018
B. V. V. SANGHA’S
BILURU GURUBASAVA MAHASWAMIJI INSTITUTE OF TECHNOLOGY,
MUDHOL – 587 313
Seminar on
Contracts documents legal aspects and termination of contract or
breach of contracts
Presented by
Sachin P Goundi (2LB22CV414)
CONTENT
Introduction.
Key characteristics of contracts.
Contract document typically includes.
Contract document legal aspects.
Termination and breach of contract.
INTRODUCTION
• Contracts are formal agreements between two or more parties that
establish rights and obligations.
• They are fundamental to both personal and professional interactions,
providing a legal framework to ensure that all involved parties fulfill
their commitments
• A contract document is a written agreement between two or more
parties that outlines the terms and conditions of a project or agreement.
Key characteristics of contracts.
1. Legally binding: contracts are enforceable by law, ensuring accountability.
2. Mutual agreement: all parties must agree to the terms of the contract
voluntarily.
3. Offer and acceptance: contracts are initiated with an offer by one party
and accepted by another.
4. Consideration: each party provides something of value, such as money,
services, or goods.
5. Purpose: the contract's objective must be lawful and not against public
policy.
Contract document typically includes.
1. Scope of Work: A detailed description of the work to be performed.
2. Payment Terms: The amount and schedule of payments to be made.
3. Timeline: The project timeline, including start and completion dates.
4. Warranties and Guarantees: Any warranties or guarantees provided
by the contractor.
5. Dispute Resolution: A process for resolving disputes that may arise
Legal aspects of a contract.
Offer and acceptance
• One party makes an offer, and the other party must accept it unconditionally.
• A cceptance should be communicated clearly to the terms of the offer.
Intention to create legal relations
• The parties involved must intend for the agreement to have legal
consequences.
• Social or domestic agreements are generally not considered legally binding.
Consideration
• There must be a lawful exchange of value (money, goods, services, etc.).
• Consideration cannot be illegal or immoral.
Legal capacity of parties.
• All parties must have the legal capacity to enter into a contract
• Corporations or organizations must act through authorized representatives
lawful Purpose
• The contract must have a lawful objective.
• Agreements involving illegal activities are avoid.
Certainty and Completeness
• The terms of the contract must be clear.
• Essential details like parties, obligations, and timelines should be specified.
Free Consent
• Consent must be given freely without coercion, undue influence, fraud.
• Contracts entered under duress or deceit are voidable.
Legality of Form
• Certain contracts must be in writing (e.g., real estate agreements).
• Depending on jurisdiction, some may require notarization or registration.
Termination and breach of contract.
• 1. Termination of a contract
Termination occurs when one or both parties end the agreement
before the contract is fully performed. It can happen in various ways:
Types of termination:
By mutual agreement: both parties agree to end the contract amicably.
Termination for convenience: one party ends the contract without a specific
breach, often based on contractual provisions.
Termination for cause: when one party fails to fulfill its contractual obligations
(a breach), the other party has the right to terminate.
Key considerations:
• Notice period: contracts often require advance notice for termination.
• Compensation for work done: fair payment for services performed up to the
termination date may be required.
• Termination clause: specifies the conditions under which termination can occur.
Breach of Contract
A breach occurs when one party fails to fulfill
their contractual obligations as agreed, either partially or fully.
Types of breach:
1.Material breach: a significant failure that undermines the contract's core
purpose. Example: a contractor failing to deliver work on time or as
specified.
2.Minor breach: a small deviation that does not significantly impact the
contract's purpose. Example: delayed delivery of a non-essential document.
3.Anticipatory breach: one party indicates they will not fulfill their
obligations before the due date.
Legal Remedies for Breach:
1.Damages: indirect and direct losses.
.
2.Specific performance: A court order requiring the breaching party to fulfill their
obligations.
3.Rescission: canceling the contract and returning both parties to their pre-
contract positions.
THANK
YOU
