| When you sign a contract, you are creating a legal | | | | acceptance, consideration and the intention to |
| binding relationship between yourself and the | | | | create legal relations. If any of the elements fails, |
| person or legal entity which you are signing with. | | | | then the contract is not valid and you can |
| The obligations and promises contained within a | | | | potentially contest the legal basis of the contract. |
| contract can be enforced in a court and you can | | | | There is also the doctrine of misrepresentation |
| be made to pay damages to a court if you do | | | | which means that if a material misrepresentation |
| not perform your obligations under a contract. For | | | | is made about the nature of the contract or the |
| this reason, the law of contract is a very | | | | promises which are being made under the |
| important in the daily operations of businesses and | | | | contract, the contract may not be valid. |
| if you are involved in buying a house, using a | | | | A misrepresentation can be either express or |
| public service or basically any act which involves a | | | | implied. Sometimes the doctrine of mutual mistake |
| relationship with another business entity or person, | | | | can apply which means that both parties did not |
| there is a potential for a contractual situation to | | | | fully understand the contract that they were |
| arise. If you are encouraged to sign a contract by | | | | signing and then there is also the doctrine of |
| someone and then you discover that you have | | | | unconscionibility which usually means that if there |
| been misled as to the contents of the agreement | | | | is such an imbalance of bargaining power between |
| of in some way cheated into signing, there are a | | | | the parties that it could be said that one was |
| number of ways in which a contract can be made | | | | taking advantage of the other then this contract |
| void or voidable. | | | | may be void or voidable at the choice of the |
| There are a series of legal concepts which apply | | | | party adversely affected by the contract. These |
| to the formation of a contract which mean that if | | | | are some of the objections which can be raised |
| the contract fails in some of these respects it | | | | where it appears that a contract is unfair and |
| may not be valid. A contract requires offer, | | | | should not be deemed legally valid. |