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 subsequently.
This note is relevant to students writing the following examination:
- WAEC Wassce Business Management
- WAEC Wassce – Social Studies
- Cambridge International College (CIC) – Business Administration
- Institute of Commercial Management (ICM) – Business Administration
- And many others.
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What Is Law?
The answer is a straightforward one.
I can define law as the rules and regulations that govern the behaviour of a group of people in a specific area.
It means that we make laws for human beings, not inanimate objects.
Secondly, we should enforce laws for the people it was made.
Lastly, laws are territorial in nature, i.e. they apply only in a specific geographical area.
A contract, in simple terms, refers to a legally binding agreement. There are three keywords 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”.
In this regard, the parties to a contract must all have the same understanding of the act 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 in a court of law.
This means that, the parties involved in the contract must know and understand that their actions can have legal consequencesthe in future.
What is Law of Contract?
Law of Contract is a body of rules and regulations (,i.e., Laws) that govern the contractual agreement.
Every field of life requires laws to govern the behaviour of the persons that operate there, and contracts are no exception.
I emphasize that “The meaning of Law of Contract – Business Management” is a concept not only for academic purposes.
However, it is also helpful for everyone in life. Please note that Educareguide has many other things or notes on Law of Contract in our other posts, and please read further on our page. Thanks.
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