Law of Contract Notes in Kenya: Important Points to Remember
A contract is a legally binding agreement between two or more parties that creates rights and obligations that can be enforced by law. The law of contract in Kenya is governed by the Contract Act, which was enacted in 1872 and is still in force today.
If you are studying law or are involved in contract negotiations, it is important to understand the key principles of the law of contract in Kenya. Here are some important points to remember:
1. Offer and Acceptance
The first step in forming a contract is the offer and acceptance. An offer is a proposal made by one party to another, expressing a willingness to enter into a contract on certain terms. The acceptance is the expression of agreement by the other party to the terms of the offer.
2. Consideration
Consideration is the value or benefit that each party to a contract agrees to give to the other. It is what each party gives or receives in exchange for the promises made in the contract. Consideration does not have to be in the form of money, but it must have some value.
3. Capacity
Each party to a contract must have the legal capacity to enter into it. This means that they must be of legal age, of sound mind, and not under duress or coercion. If a party lacks capacity, the contract may be void or voidable.
4. Legality
A contract must be legal to be enforceable. It cannot involve illegal activities or contravene public policy. For example, a contract to sell illegal drugs would be unenforceable under the law.
5. Time and Place of Performance
A contract must specify the time and place of performance. If it does not, the law will imply a reasonable time and place for performance.
6. Breach of Contract
If a party fails to fulfill their obligations under a contract, it is considered a breach of contract. The non-breaching party can seek remedies, such as damages or specific performance, through the courts.
7. Termination
A contract can be terminated for various reasons, such as mutual agreement, breach, or frustration. Frustration occurs when an unforeseen event makes it impossible to perform the contract or defeats its main purpose.
In conclusion, understanding the law of contract in Kenya is essential for anyone involved in contract negotiations or studying law. Remembering these important points can help you recognize the key elements of a contract, identify potential issues, and seek legal remedies if necessary.
