How does law of contract and civil obligation relate to each other

How does law of contract and civil obligation relate to each other-illustrate & explain

Introduction

Human beings are social creatures. To survive they have to live in a society. A society makes sure that its’ citizens needs are fulfilled and rights are protected. For doing so, it has some rules and regulations known as laws. Every citizen has to avid by these laws. The law of contract is such a law.

The law of contract ensures that whenever people make a contract they fulfill their obligations as stated in the contract. The objective of this report is to illustrate and explain that “The law of contract confines itself to the enforcement of voluntarily created civil obligations”. To reach that goal certain questions must be answered:

1) What is contract?

2) What is civil obligation?

3) What is law of contract?

4) How does law of contract and civil obligation relate to each other?

Body

Contract

A contract is a legally enforceable promise. The system of contract law enables agreements between two or more individuals to be legally binding in a court of law. Contracts are vital to society because they facilitate cooperation and trust. Rather than relying on fear of reprisal or the hope of reciprocity to get others to meet their obligations, people can enlist other people to pursue common purposes by submitting to contracts that are backed by impartial authority. Without contracts and their supporting institutions, promises would be much more vulnerable to ill will, misunderstanding, forgetfulness, and other human flaws. Indeed, contracts allow people that have never even met to reach agreements which they would never consider making outside of a legal framework.

Contract is an agreement between two or more persons, concerning something to be, done, whereby both parties are bound to each other, or one is bound to the other. A contract can be formal, informal, written, oral or just plain understood. It can also be described as such that it is an agreement between two or more parties which creates obligations to do or not do the specific things that are the subject of that agreement.

The existence of a contract requires finding the following factual elements: a) an offer; b) an acceptance of that offer which results in a meeting of the minds; c) a promise to perform; d) a valuable consideration (which can be a promise or payment in some form); e) a time or event when performance must be made (meet commitments); f) terms and conditions for performance, including fulfilling promises; g) performance.

Civil obligation

The term civil obligation has two key words ‘civil’ and ‘obligation’. The word ‘civil’ means the life and affairs of a citizen, as distinguished from military and ecclesiastical life and affairs. And obligation means the requirement to do what is imposed by law, promise, or contract; a duty. Civil obligation is a tie which binds us to pay or to do something agreeably to the laws and customs of the society in which we live.

“Obligations are divided into imperfect obligations and perfect obligations. A civil obligation is a perfect obligation, which means it has a binding operation in law that gives to the obligee the right of enforcing it in a court of justice; in other words, it is an engagement binding on the obligor.”

Obligations are duties which are owed by one person to another. Corresponding to such duties are rights of the one to whom the duty is owed to ensure that the obligation is complied with.

Obligations are regarded as voluntary where the parties to the obligation have exercised their will for its formation.

Law of contract

Since ancient times, contracts have been made between parties. However, as time passed it became necessary to introduce and enforce some kind of law to ensure every one’s rights are protected. So that no one is cheated, tricked or forced into a contract or no is a victim of any ill will. Thus, law of contract came to being. Although, it started to take shape around 15th century the complexity of contracts grew and forced the law to change alongside it to protect people’s rights.

During the middle and late 20th century the law of contract started to be more standardized. Instead of just making sure that the parties who entered an agreement voluntarily completed their obligations, the courts were concerned with complaints of perceived unfairness, such as illegal bargaining power. So, courts gradually became strict on technical interpretation of contracts in favor of a “fairness” approach based on criteria such as good faith, reasonableness, and justice. This move resulted in greater protection of weaker parties and a more realistic interpretation of agreements.

The relationship between law of contract and civil obligation

The law of contract defines that for a contract to be enforceable by law it must have the following:

1. Offer and Acceptance: A lawful offer and acceptance must be there.

2. Intention to create Legal Relationship: All parties must intend to create a legal relationship.

3. Lawful Consideration: the parties must be giving something in order to acquire something.

4. Capacity of Parties: All parties must be capable of entering the contract.

5. Free Consent: the parties must enter the contract in their full consent.

6. Legality of the Object: the object of contract must be legal.

7. Certainty: The contract must be absolutely clear to all.

8. Possibility of Performance: the parties must be capable of performing the contract.

9. Void Agreements: the agreement must not be expressly declared to be void.

10. Writing, Registration and Legal Formalities: where writing and legal formalities are needed it must be done.

If any one of the above is missing the contract will not be valid or enforceable by law. As free consent is one of those key elements it can be said that the parties in a contract must enter it voluntarily. Now, according to Scots law whenever there is a contract obligations are created which must be fulfilled by the parties. These obligations are voluntarily created civil obligations because these arise when the contract is created and these obligations are enforced by law.

The creation of law of contract was to protect everyone’s rights after they engage in a contract. Therefore, it makes sure that the voluntarily created obligations are fulfilled. In addition, it can only deal with civil obligations made by contract because if it is imperfect obligation the contract is void. Thus, the law of contract confines itself to the enforcement of voluntarily created civil obligations.

Remarks

It was clearly visible that when contract is created there are always voluntary civil obligations with it. Law of contract enforces those obligations and makes it fair for all.

Conclusion

Humans are social beings who live by the society’s rules and regulations to survive in this world. From ancient times due to trade and other issues peoples engaged in contracts. After a point it became absolutely necessary to make a law to make sure people are fulfilling their obligations.

Bibliography

CONTRACT, Available from:- http://www.lectlaw.com/def/c123.htm [Accessed 12 February 2013]

CONTRACT, Available from:- http://legal-dictionary.thefreedictionary.com/Contractual+obligations [Accessed 12 February 2013]

CONTRACT, Available from:- http://www.referenceforbusiness.com/encyclopedia/Con-Cos/Contracts.html#b [Accessed 12 February 2013]

Huntington,M., Importance of Contract Law, Available from:- http://www.ehow.com/info_7909925_importance-contract-law.html [Accessed 12 February 2013]

Introduction to the Scottish Law of Obligations, Available from:- http://static.luiss.it/erasmuslaw/scozia/obligations.htm [Accessed 12 February 2013]

Levin,J.,McDowell,B.,The Balance Theory of Contracts: Seeking Justice in Voluntary Obligations, Available from:- http://lawjournal.mcgill.ca/documents/29/1/mcdowell.pdf [Accessed 12 February 2013]

Sen, A. (2012). Commercial law including company law (25th ed.). (S. Mukherjee, Ed.) koltata:The world press private limited.

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