UNDERSTAND THE MEANING OF A CONTRACT BEFORE YOU ENTER INTO ANY

By 

Ecungu George William

Uganda-Section 10(1) of the contract act 2010, defines a contract as an agreement made with free consent of parties with capacity to contract for a lawful consideration and with a lawful object with an intention of being legally bound.

Parties to a contract must have their minds meet. This is what is called consensus ad idem. This means that they must exercise their free will. A party to a contract is said to be in breach of it if he or she fails to full fill the terms of the contract as agreed during its formation. When the minds of the parties are in crossroads, then their is no contract.

Section 10 (2) of the contract act 2010 clearly stipulates that a contract can be oral or written, or partly oral or partly written, or it can be implied from tye conduct of the parties.

In the book, unlocking the law of contract, 4th edition (2014) by Chris Turner, contracts are classified into: contracts by deed, simple contracts, Bilateral contracts and unilateral contracts.

Contracts by deed are defined as contracts under seal that must be executed in a prescribed form. The black man law Dictionary defines a deed as a legal document signed, witnessed and delivered to create legal obligation.

On the other hand, simple contracts are contracts which are not deeds. They are called simple contracts because they can be formed in any form. They can be formed orally or written, or partly oral or partly written, or can be formed by the conduct of the contracting parties.

Furthermore, Bilateral contracts are defined as contracts where a promise by one party is exchanged for a promise by a nother. For example, where a buyer promises to pay the price of a good, and the seller promises to deliver the good to the buyer.

Unilateral contracts according tho the Blackman law Dictionary is defined as a contract where one party promises to do something in return to the act of a nother as opposed to the promise. Here, only one person makes a promise. For example, where person A promises ugx5000 to whoever gets his lost wallet. This promise has not been made to a particular individual. When person B discovers the lost wallet, returns it to person A, person B is entitled to be rewarded. We note that, under unilateral contracts, only the actor is entitled to be rewarded and cand sue the one who promised, the one who promised can not sue any one for failing to recover his or her property.

Once a contract has been formed, it can either be enforced or unenforced. That is why we have contracts classified bassing on enforceability. Turner, in his book unlocking the contract law 4th edition, published in 2014 describes three classes of cantracts according to enforceability. They are: void contracts, voidable contracts and unenforceable contracts.

A void contract is a contract where the whole transaction is regarded as a nulity from its onset. This means that, their has been no contract between the parties. Such contracts include all contracts which are restricted by law for example selling amnutions in uganda, contracting to kill a person, contracts which are against public policy.  Any goods or money obtained in void contracts must be returned. Where the goods have been resold to a third party, they can be recovered by the original owner.

Voidable contracts are valid contracts unless and until one of the party takes step to avoid it or set it aside. This is agreement wich is binding and enforceable but because of lack of one or more essential of a valid contract,it may be set aside by the aggrieved party.  If a person, entitled to such a right fails to exercise it in a reasonable time, then the contract will be said to have been affirmed by himor her and is from that time binding on him or her. Such contracts include: contracts entered into by minors,those affected by duress, undue influence. Anything obtained inder this contract must be returned. If the goods have been sold before the contract was avoided, the original owner cant reclaim it.

Unenforceable contracts is a valid contract which can't be enforced in the courts of law if one party refuses yo carry out its terms.  Items received under this contract can't be generally reclaimed.

In conclusion, avalid contract has the following essentials which must be observed fully. Absence of any of the essentials renders the contract not to be valid, they are: Agreement, consideration, intention to be legally bound, capacity, consent, and legality.

(The writter is a senior political activist who has authored many articles on politics, himan rights, culture and law. You can contact him on 0775253518)