Key Contract Law Definitions

DefinitionLaw of Contract I · Year 1 · Semester 2

Overview

Essential definitions for contract law study. Understanding these terms precisely is critical for exam success and legal practice.

Legal Basis

Contracts Act 2010

Key Principles

Offer: A definite proposal made to a specific person or the world at large with intention to be bound
Acceptance: Unconditional assent to all the terms of an offer
Consideration: Something of value given in exchange for a promise
Capacity: Legal ability to enter into a binding agreement
Privity: Only parties to a contract can sue or be sued on it

Exam Tip

In multiple-choice or short-answer questions, precise definitions can earn you easy marks. Learn the statutory definitions from the Contracts Act 2010.