Act of Congress The Foundation of Contract Law (CLF)

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Justice Department




Establish the foundation of Contract Law

The people of Democracy Craft, through their elected representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the ”The Contract Law Foundation Act’'or “CLF Act”.
(2) This Act shall be enacted immediately upon its signage.
(3) This Amendment was Co - Sponsored by Speaker of the House AndreyMia

2 - Purpose
Contract law plays a massive part in the daily lives of the citizens of Redmont, however there is no formal structure and definitions to go by for our courts and legal practitioners/advocates. This bill ensure the definition of the different types of contracts to the important leets in making a contract. This will also help improve and expand upon the Contract Law Act.

3 - Responsibilities
(1) Sets out the foundation for the area of contract in legal guidance.
(2) Gives easy definitions of terms and elements to a contract.
(3) Sets the standard for legal practitioners/advocates to work from.
(4) Helps ensure correct practice.

4 - What is a contract
(1) A contract is a legally binding agreement that is one over which you can sue or be sued to enforce.
(2) Contracts with non legally binding agreements are know as promises/gifts
(3) If an agreement is to be a contract there must be a certain essential criteria that must exist in order to create a contract.
(4) These are in order: Offer, Acceptance, Consideration, Capacity, Legality, Legal intent and Format.
(5) If any one of these criteria are absent from the arrangement it will not suffice and a contract, meaning it will not legally bind the two people together.

5 - Types of contacts
(1) There are contracts under seal or contracts by deed. These must be in writing but do not require consideration.
(2) Bilateral contracts are ones where a party promises in exchange for a promise by the other party, note they are legally bound not for they made a promise but because they made a bargain.
(3) Unilateral contracts can contain two or more parties but only one promisor. One party promises in return for an act by the other, this is also legally bound no ton promise but bargain, i.e. an offer of reward for a return or act of something etc lost dog found and returned for a reward.

6 - Offer
(1) A contract must begin with an offer, this is a unequivocal statement of terms on which you are prepared to do business
(2) It cannot be vague or ambiguous
(3) It must be communicated this can be oral written or throw conduct, however the enforceable and safest option will always be written.
(4) The offeree ( person accepting offer ) must know of the offer in order to accept. Coincidental performance of the terms of the offer without knowing of it existence does not create a binding contract.
(5) Distinguish between and offer and an invitation to treat is very important. An offer can be accepted where an invitation to treat cannot. A statement of information or price is not capable of acceptance, I.e. the box cost $10/ offer I.e ill sell the box to you for $10
(6) Request of tender is a request of offers, example would be to ask for a price range for a job.
(7) These are not considered offers but merely invitations to treat: display of goods, advertisements ( note this can be considered an offer where the court takes the opinion the advertiser intended to be bound if another party responded )

7 - Termination of offer
(1) An offer may be incapable of producing a contract for a variety of reasons.
(2) Revocation I sone such method, this mean an offer can be revoked or withdrawn at any time before it is validly accepted and to be effective the offeror need only show that at the time of the purported acceptance the offeree knows that the subject matter Is no longer available to the offeree. This must be communicated from the offeror.
(3) In a unilateral contract as they are made for a wider audience, it can be difficult to revoke an offer for the offeree, so in order to revoke the offer the offeror must take all reasonable steps to notify all that possible could have saw it.
(4) An offer can be withdrawn at anytime even if promised to keep open for a specified period of time as promise are not legally binding, however if the offeree pays consideration for the offer to be kept open this id a legally binding option is created.
(5) If the offer is rejected the offer is then terminated.
(6) A counter offer to the same affect has the potential to terminate the contract as they are operating out of the offerors original offer.
(7) Lapse fo time, an offer ill cease to exist if not accepted within any specified time limit.
(8) Death if a party dies to the offer the offer dies with them ( translated to server meaning death=banned)

8 - Acceptance
(1) Acceptance is a statement of willingness to enter into a contract as offered, it is the act the creates the contract. At that moment of acceptance the parties to the contract are bound and cannot be revoked unless mutually assured.
(2) A valid acceptance is essentially saying yes to the offer. Acceptance of an offer must be absolute and unqualified, if not the original offer is rejected and the contract must start afresh.
(3) The two main parts of acceptance is it must match the offer “mirror image rule” ( states that an offer must be accepted exactly with no modifications. The offeror is the master of their own offer ) and it must be communicated.
(4) However silence will not act as acceptance ( irl this odes but this complicates matters )
(5) The receipt rule will not apply ( irl complications )
(6) Postal rule will not apply ( irl complications )

9 - Consideration
(1) Consideration is the price to be paid under a contract. It is what distinguishes a contract from a. Promise. All contracts require former of consideration.
(2) There are three forms of consideration, executed, executory and past consideration.
(3) Executed consideration is a promise in return for an act
(4) Executory consideration is a promise in return for a promise
(5) Past consideration is an invalid form of consideration, something does in the past is not sufficient for the new contract there mist be fresh consideration.
(6) Consideration must be sufficient but not need be adequate.
(7) The Pinnels rule: part payment of a debt does not satisfy the whole. Exception to the rule is part payment on earlier date or some goos or other material benefit to accompany the part payment.
(8) Consideration must be given by a party to the contract.
(9) The doctrine of promissory estoppel, is an equitable doctrine that may arise where a person promises or implies that he will not rely on his strict legal rights, but the promise is not binding under contract law, due, for example, to lack of consideration.
(10) The doctrine of promissory estoppel can be used as means of avoiding the rule of pinnel.
(11) In unilateral contracts the general rule is that the acceptance and consideration are one and the same.

10 - Intention to crete legal relations
(1) The test for intention I objective, would a reasonable person considering all the circumstances of the agreement conclude whether there was any intention to enter into a legal relation.
(2) The presumption is that the intention to create legal relations is present, the burden of proof is on the party seeking to deny it.
(3) Rebutting a presumption can be, A lack of certainty and formality, vagueness on essential terms, absence of reliance on the agreement and an agreement made in haste.

11- Terms
(1) here are expressed terms and implied terms.
(2) If one of the parties are in breach of a contract through a exclusion clause they may limit the liability.
(3) Terms can be classified into the following, conditions, warranties and mere representations.
(4) Conditions are the most important term which form the main structure of the contract breach of one of these gives the injured party the treat itself as free of any further contractual duties.
(5) Warranties do not allow the injured party to refuse to perform its side but rather they are entitled to compensation. These are more considered ancillary than crucial to the make up of a contract.
(6) Mere representation these are mere statements that are not intended to be a term of that contract.
(7) Sometimes difficulty due to not done correctly it can be hard distinguish between each type of term, they then become innominate and the courts decides if this will be a condition or warranty
(8) Expressed intentions must be conditions.
(9) These expressed terms must be specifically communicated by the offeror where as implied terms come from statue customs or the courts.
(10) Exemption clause is a clause in a contract that tries to exclude or limit the liability of one party under the contract.
(11) Limitation clause are ones that attempt to limit the liability of the stronger party.
(12) Due to these infringing on the right to enter a contract, the court look to two strict test, one was the clause incorporated into the contract and was the clause properly con strutted to cover the even that occurred. It must pass both these tests.

12 - Misrepresentation
(1) A representation becomes legally significant when it becomes false, then it becomes known as a misrepresentation.
(2) When such a statement becomes part of the contract then the aggrieved party can sue for breach of contract.
(3) In essence it means when one party to the agreement makes a statement of fact which is untrue and the other party relies on it and incurs a loss.
(4) To test this the statement must be one of fact, must be a statement, must be untrue and acted as a material inducement.
(5) Traders puff is not a statement of fact.
(6) If the statement is made and is know to be false by the party starting it they will be held liable.
(7) Innocent misrepresentation is when the statements made where they believe it to be true and had reasonable ground to do so but didn’t turn out to be true.
(8) Negligent mis representation is when they believe the statement to be true but without reasonable grounds.
(9) Remedy to these is rescission.
(10) This allows the injured party to either affirm (continue) or terminate the contract thus making it void.

13 -Definition:

(1) Offeror - person making an offer
(2) Offered - person seeking to engage with the offer
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Second Lady

Presidential Assent

This bill has received Presidential Assent and is hereby signed into law.
I'd like to work with Representative Poemhunter to ensure this is implemented properly, there are a lot of variables in this bill which is why it took me a little bit to sign it, let's make sure we do this right. We do have kids here, I'd prefer it if we don't overcomplicate things beyond their understanding. This is progress, I like to see it. ;)