LAW OF CONTRACT

A contract is a set of promise or promises or a definite undertaking with the understanding that
when promise has been accepted by the other person, the undertaker is bound by it.

A contract is simply a promise or set of promise which the law will enforce or recognize as legal
rights and duties of parties.

In oyewale v lawal, Fabedy, J.C.A as he then was, adopted the definition of contract from page
291 – 293of the 5th edition of the blacks law dictionary as an agreement between two or more
persons which create an obligation to do or not to do a particular thing.

In Kabo Air .V Tarfa, Galadima J.C.A as he then was, held that a contract must be an
agreement which is legally binding on the parties to it and which if broken may be enforced b7y
action in court against the defaulting party.

Difference Between A Contract and A Mere Agreement

There must be consensus ad ide meeting of the mind. See this regard Orient Bank Nig.Plc V.
Bilante int-ltd

The following are the futures of a valid contract

1. There must be an offer from party A to party B and it must be a definite undertaking.
2. It must be accepted by party B and it must be communicated to part A. This
communication can be expressed or implied
3. Part B MUST FURNISH something or lose something no matter how minimal . It is
called consideration. It can be monetary or monies worth the amount or consideration is
immaterial that definite undertaking must be backed by intention to enter into a contract.
The intention can expressed or implied.
4. Party A and Party B must be of legal capacity i.e. an infant is not allowed to enter into
contract.
5. The Contract must not contain any element of illegality i.e. A transaction prohibited by
law e.g. kidnaping. Any of such transaction is illegal even if it contains all the elements
of a contract are in place3. It is contrary to public policies such contracts are
unenforceable.
 Types Of Contract
1. Formal / Simple Contract
2. Bilateral / Unilateral Contract
3. Express / Implied Contract
4. Electronic Contract
5. Void / Voidable Contract
6. Executed ./ Executory Contract
7. Quasi Contract

Formal / Simple Contract

A Formal contract is a contract under seal or a deed It must be in writing or may be typed on
paper. A deed is supposed to be executed i.e. completed and gives full legal effect by the signing,
sealing and delivering it by the party executing to the other party

Examples of formal contracts are;

A contract to dispose of or interest in land. Aviation, insurance and some labor / employment
contracts are usually formal contracts.

Simple Contracts are oral and not usually written, or if written are not under seal of the parties.
The major distinction between a contract under seal (deed) and a simple contract is that the a
party who has furnished consideration can bring an action to enforce a simple contract . In other
words, the validity of the simple contract is derived from the presence in it consideration

Simple Contracts can take both the oral and written form. In Rev{Dr.} Abel V. Clement Akpan,
the respondent Clement Akpan entered into an oral agreement with the appellant, Rev{Dr.} Abel
Damina head of a church, to paint the residence of the reverend and the church itself. He claimed
a balance of N350,000 unpaid fees for his work. At the conclusion of the case, the trial judge
found in favor of the plaintiff painter and awarded him damages or N260, 000 as the unpaid
balance 9of the partner’s fees.

The reverend appealed to court of appeal, and the court confirmed the judgment o0f the lower
court. Although the contract was an oral agreement, the court held that a contract can be inferred
from the conduct of the parties and not withstanding the fact that the contract was oral, it was
enforceable moreover. In this case, a receipt issues for the work
Express and Implied Contract

Where the parties to a contract expressly state their duties, rights and remedies in any case of
breech, without more, the contract is said to be expressed.