Discuss the possibility that rights of Singapore citizens, as enshrined in the Constitution
Class Activity Get into small groups and discuss the following:
1) Discuss the possibility that rights of Singapore citizens, as enshrined in the Constitution
of Singapore can be curtailed or removed.
2) Would you agree that litigation is still the best method of resolving business disputes
in Singapore?
3) Suggest reasons for Specialised Courts.
COMMERCIAL LAW
KHE-LCD-SGD-00341 12
Topic 2 – The Law Of Contract: Offer & Acceptance
Introduction
A contract is a legally binding agreement between two or more persons. For example, if you
buy a meal, purchase any goods, buy a house, engage a builder to carry out work on your
house, borrow money, order goods or machinery from a manufacturer, or sign up for a
telephone plan, these are all types of contracts.
The law of contracts is vital to the law which affects consumers. It is a complex area and is
governed both by the general law – that is, laws which have evolved from decisions made
over the years by judges, and laws introduced by the courts and parliament.
Who can make a contract?
Generally, a person is able to make a contract when they reach 18 years of age. However,
there are some circumstances when a person who is younger than 18 will be bound by a
contract into which he or she has entered.
A person who is mentally ill or intellectually disabled at the time may not be bound by a contract
entered into.
What makes a contract?
A contract involves certain basic elements:
• Offer – a willingness by one party to enter into a legal relationship with another party,
• Acceptance (of that offer) – the party to whom the offer is addressed accepts that
offer,
• Consideration – an exchange between the parties of some benefit or something of
value; for example, a party pays a sum of money for goods supplied by another party,
the exchange would be that one party receives the goods while the other receives the
money, and
• An intention to enter into legal relations – that is, the parties intended to enter into
a legally binding agreement (although this is often not specifically stated, it is usually
implied).
All four elements must exist for there to be a legally-binding contract.