BLAW10001 Lecture Notes - Lecture 4: Odometer, The Seller, Exxon

• School: University of Melbourne
• Department: Business Law
• Course: BLAW10001
• Professor: Dr Tanya Josev

Document Summary

The legal concept of a contract: a contract is a legally enforceable agreement between two or more persons who are called the parties" to the contract, contracts create legal obligations. Legal obligations consist of correlative rights and duties: contractual rights and duties can be discharged by voluntary performance. If there is a failure to perform the contract, a breach of contract may arise. A breach of contract provides the legal basis for bringing an action in court to enforce the agreement. In other words, a breach of contract is a cause of action". In most cases, people tend to do what they have bound themselves by contract to do, because it is convenient, it builds trust and it avoids lawsuits. Generally, therefore, contracting parties can rely on their agreements, making them a useful and reliable planning tool. The right to enforce contractual obligations: contractual obligations only exist between those who have agreed to undertake them.