TOURISM AND HOSPITALITY LAW

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TOURISM AND HOSPITALITY LAW

• WEEK 4
• LAW OF OBLIGATIONS

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LAW OF OBLIGATIONS

• Obligations may arise due to 3 main reasons
• 1. Contract
• 2. Tort
• 3. Unjust Enrichment

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Contracts

• Agreement creating legally enforceable
  obligations.
• A contract
• is a legal transaction
• is an exchange of assent by parties
• Results in an obligation
• Enforceable by law

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Contracts

• For contract to be valid
• valid agreement b/w parties
• capacity to contract
• legal cause
• legal subject
• genuine assent
• formal requirement

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Classification of Contracts

• Valid Contracts Possess all elements of
  contract. Fully binding and enforceable
• Void Contracts Contracts which are against law
  or morals, incapacity, lack of formality and
  impossibility. No legal effect.

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Classification of Contracts

• 3. Voidable Contracts Contracts based on
  mistake, duress and fraud are void.
• May be rejected by the option of one of the
  parties.
• They are valid until declared void.

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Elements of a Valid Contract

• 1. Offer For a valid offer
• A) Intention to create legal relationship
• B) Definite and Certain
• C) Must reach to the oferree
• 2. Acceptance
• 3. Capacity
• A)Natural Incapacity
• B) Legal Incapacity

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Elements of a Contract

• 4. Genuineness of Assent Differences of assent
  may be due to
• A) Mistake Immaterial and Material
• B) Fraud
• C) Duress
• 5. Legal Cause Consideration
• 6. Legal Subject
• 7. Form of Contract