Valid, void, voidable and unenforceable contracts

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MEANING OF A CONTRACT

Contract law covers the legal implications of a contract. For instance, contract law determines what is and is not consideration, whether a contract was actually intended, if the parties making the contract were legally competent, whether there was fraud or duress involved, or how a contract is terminated.

A CONTRACT IS AN:

'an agreement that the law will enforce';

'a promise or set of promises that the courts will enforce'; or

'a legally enforceable agreement'.

All of these definitions stress the concepts of 'agreement' and 'enforceability'.

A contract is thus more than an agreement. Some agreements (e.g., social and domestic agreements or arrangements) will not be enforced in court.

When a party to a contract fails to carry out his or her obligations, the other party is entitled to enforce his or her rights for breach of contract in a court.

There is a useful formula for establishing the ...