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Application of Law to Business Enterprise / Contract Law | Chapter 2 (ZG_4.2)

Contract & (Commercial Litigation) Law

A contract may be defined as an agreement between two or more parties that the law will enforce. Contract law is concerned with the rules which govern agreements. Business requires that agreements should be honoured by performance of the promises made in order to ensure that expectations are fulfilled. This is essential to ensure confidence and stability in the market place.

A contract may be as simple a transaction as buying a cup of coffee, or a complex matter such as an international agreement for the supply of raw materials for a period of years, or an insurance contract.

Contracts may be classified as:
1. Simple contracts
2. Formal contracts - a contract under seal (a deed)
  • Business Law | Chapter 2
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