LAW OF CONTRACT FOR CPA/ICM/KNEC/CDACC AND ACCA STUDENTS
LAW OF CONTRACT DEFINITION OF CONTARCT A contract is an agreement of promises which is legally binding or enforceable by law. According to Salmond a contract is an “agreement creating and defining obligations between the parties.” According to Sir William Anson , “A contract is an agreement enforceable at law made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. Sir William Anson further observes as follows: “As the law relating to property had its origin in the attempt to ensure that what a man has lawfully acquired he shall retain, so the law of contract is intended to ensure that what a man has been led to expect shall come to pass; and that what has been promised to him shall be performed.” Based on the above definition a contract exists when there is: 1. an agreement 2. the agreement is enforceable by the law The law of contract impos...
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