Implied in fact contract and dating
This contract focuses on English contract law, which shares many common features with other common law jurisdictions such as Australia, New Zealand, Canada and the United States, although individuals from those countries should always seek appropriate legal advice.1) Privity of Contract It is important to remember only the parties to the contract may enforce the terms of the agreement.The £100 is not consideration for any agreement to paint the fence, that was a voluntary act, and helping paint the fence came after that voluntary act.Consideration must have an economic value in order for it to be valid in a contractual context.3) Exceptions to the rule on Past Consideration There are two exceptions to the issue of past consideration. The Bills of Exchange Act 1882, means that a pre-existing debt or obligation can be good consideration for a bill of exchange.An equally important point to note is that the name of the company is written correctly both in the agreement and on any invoices that are submitted.It may seem a small thing but a small businessman discovered to his credit that missing off “Limited” from his company name meant that he was personally liable for the debts he incurred.Far too often in my experience small businesses enter into transactions sending a written contract for a signature and they failed to ask the questions to confirm that the individual whom they are dealing with is legally representing the company.It can be as easy as obtaining confirmation in the form of an email or fax stating that “Joe Bloggs” is Director of X Ltd and authorised to sign on behalf of the company.
While it is good practice for all business contracts to be in writing it is not essential.For example, contracts containing a guarantee must be in writing.A guarantee is an agreement where one party agrees to pay the debt of another individual or company in the event that the third party defaults on the debt.If there is no mutual obligation then there is no contract.For example if Mr Jones takes his wife to dinner dance, and at the end of the evening the cloakroom attendants return their jackets; Mr Jones tips the cloakroom attendant £10 that is not a contract. Mr Jones has simply given the cloakroom attendant £10 by way of a gift or a gratuity.