A contract is a written or spoken agreement between two or more parties that can be enforced by law. It involves one party offering to do something and the other party accepting, creating mutual obligations.

What are the essential elements of a valid contract?

For a contract to be valid, it must have:

1. An agreement between parties
2. Intention to create legal obligations
3. A “meeting of the minds” (mutual understanding of terms)
4. Contractual capacity of parties
5. Legality of purpose
6. Possibility of performance

Do all contracts need to be in writing?

No, contracts can be written or oral. However, certain types of contracts must be in writing and signed by both parties to be legally binding. These include:

• Contracts for the sale of land
• Long leases (ten years or more)
• Credit agreements
• Contracts of suretyship
• Contracts for executory donations
• Marriage contracts

What constitutes a breach of contract?

A breach of contract occurs when one party fails to deliver what was promised in the contract. This can include:

• Not performing the agreed-upon action
• Performing only part of the contract
• Clearly indicating an intention not to fulfil the contract (repudiation)

What are the remedies available for breach of contract?

The main remedies for breach of contract are:

1. Specific performance
2. Interdict
3. Damages
4. Cancellation and damages

When does a contract end?

A contract can end in several ways:

• When all parties have fulfilled their obligations
• By mutual agreement to end the contract
• When one party cancels due to a material breach by the other
• Upon the death of one of the contracting parties
• When the specified contract period expires