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Contracts

Contract law is very complex. Although the information given here may be helpful in deciding if a right or remedy exists, expert advice will still be needed.

A person should not sign a contract unless they have read it, understood it, agree with it, and want to be legally bound by it. If they are not sure, they should get legal advice before signing the contact. Once a contract is signed it is usually a legally binding agreement.

What is a contract?

  • A contract is a legally binding agreement between two or more people or companies (called the parties).
  • It is an agreement that the parties intend to be legally binding - or that they would have intended to be legally binding.
  • A contract is made when promises are exchanged to do something in exchange for something else, for example, to supply goods or services for payment of a specified sum of money.
  • Each party to a contract is legally obliged to carry out her or his part of the bargain and a party who fails to do so is in breach of contract - see Breach of Contract. A court can require that person to put things right either by fulfilling the contract (called performance) or paying compensation for any loss (called damages) - see Remedies for Breach of Contract.
Contracts  :  Last Revised: Fri Oct 12th 2018
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.