The meaning of Law of contract is a very important topic in business management. Today, educareguide is going to briefly explore this concept and many other sub-topics under it subsiquently. This notes is relevant to students writing the following examination:
- WAEC wassce Business Management
- WAEC Wassce – Social Studies
- Cabridge International College (CIC) – Business Administration
- Institute of Commercial Management (ICM) – Business Administration
- And many others.
What is Law?
The answer is a very simple and easy one. Law can be defined as rules and regulations that govern the behaviour of a group of people in a specific area. What it then means is that, laws are first of made for human beings and not for inanimate objects. Secondly, Laws are supposed to be enforced on the people for whom it was made for. Lastly, laws are territorial in nature, i.e. they apply only in a specific geographical area. Which means that, when a person moves to another geographical area, the laws of his/her previous place may not apply in the new place.
A contract in simple terms, refers to a legally binding agreement. There are three key words here that educareguide wants to explain.
The key word is “LEGALLY”. This means that, the purpose of the contract must be that which is endorsed by the laws of the place/country. An agreement to commit an illegal act cannot be considered as a contract.
The next keyword is “AGREEMENT”. This means that the parties to a contract must have all have the same understanding of the act which is to be performed. There must therefore be a consensus ad idem (i.e. the meeting of the minds)
The Last key word here is “BINDING”. For an agreement to be binding, it means that the contract should be made in such a way that, the parties involved can enforce it at a court of law. This means that, the parties involved in the contract must know and understand that, their actions can have legal consequences in future.
What is Law of Contract?
Law of Contract is a body of rules and regulations (i.e. Laws) that govern contractual agreement. Every field of life requires laws to govern the behaviour of the persons that operate there. Contracts are therefore, no exception.
I must emphasize that “The meaning of Law of Contract – Business Management” is a concept not only for academic purpose. However, it is also useful for everyone in life. Please do note that educareguide has many other stuff or notes on Law of Contract in our other posts. Please read further on our page. Thanks.
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