Lesson Notes By Weeks and Term - Senior Secondary School 3

Term: 1^st Term

Week: 3

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:    Commerce

Topic:-      Contract II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Discuss the various types of contract under each class
2. Outline the methods of termination of contract
3. Explain the meaning of a breach of contract
4. Discuss the remedies for a breach of contract

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on contract	Students pay attention
STEP 2 EXPLANATION	She explains each types of contract under each class She states the methods by which a contract can be terminated	Students pay attention and participates
STEP 3 DEMONSTRATION	She further discusses the meaning of breach of contract and the remedies for it	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE

CLASSIFICATION OF CONTRACTS

1. Contracts may be classified according to their legal effects as

(i) valid contract

This is a contract that contains all the six essential elements.

(ii) void contract

A void contract is an agreement without legal effect and is usually

incapable of enforcement

(iii) voidable contract

A voidable contract is a contract lacking in some basic requirements that

may be rejected or concurred to by one of the parties

The characteristics of a voidable contract are

(1) it is valid and binding on both the parties so long as it lasts

(2) the law gives an option to one of the parties to avoid it if he so chooses

(3) the party entitled to repudiate the contract is not  bound to repudiate it.

(iv) unenforceable contract

An unenforceable contract is one which cannot be enforced in a court of

law because of some technical defects such as absence of writing, time

barred, want of stamp etc. Such contracts may be carried out by the

parties. But in the event of breach or repudiation of contract, the aggrieved

party is not entitled to the legal remedies.

(V) illegal contract.

An illegal agreement is one which is criminal in nature or which is immoral

or which is against public policy, A contract arising out of an illegal

agreement is illegal ab initio.

 

2. Contracts may be classified according to their performances as

(i) Unilateral contract

A unilateral contract is one in which only one party has to fulfil his obligation

at the time of the formation of the contract the other party having fulfilled his

obligation at the time of the contract or before contract comes into

existence.

(ii) Bilateral contract

A bilateral contract is one in which the obligation on the part of both the

parties to the contract are outstanding at the time of the contract.

(iii) Executed contract

If a contract has been fully performed, it is regarded as executed. In that

case the obligee has no further claim to make.

 (iv) Executory contract.

An executory contract is one that has not been fully performed in which

case something remains to be done.

 

3. Contracts may be classified on the basis of their formation as

(i) Express Contract

This is contract in which both parties have exercised their freedom to make

oral or written declarations of their intention and terms of the transaction.

(ii) Written contract

This is a documented contract in the sense that the terms of contract are

written down. A written contract can be formal or informal depending on the

circumstances of the case.

(iii) Quasi or implied contract.

This is contract entered into by the mere conduct or act of both parties.

There is no written or oral evidence except the act or conduct of the parties.

For instance, any time you buy something from a departmental store or

market, a contract is an impliedly.

 

METHODS BY WHICH CONTRACTS CAN BE TERMINATED

1. Completion of contract

The contract comes to an end when the parties have fulfilled their part of

promises and carried out their obligations.

2. Impossibility of performance/Breach of contract

If a contract is or becomes impossible to perform then it leads to

termination of the contract.

3. By consensus: This is when both parties agree to release each other

from their contractual obligations

4. By frustration: A contract can be discharged when the subject matter or

basis of the contract had been destroyed pr frustrated by an act of God

5. By lapse of Time: A contract can be brought to an end when the period

fixed for the agreement has been elapsed

6. By Death or Insanity of the party: The death or insanity of a person can

bring an end to the contract

7. Bankruptcy: A contract can be brought to an end when either of both

parties go bankrupt

8. Illegality of object: If the subject matter is lllegal e.g drug peddling

 

BREACH OF CONTRACT AND REMEDIES

A breach of contract occurs whenever a party who entered a contract

fails to perform their promised obligations

Some of the remedies of a breach of contract are

1. Damages: The party that has suffered loss has the right to sue for damages.
2. Recession: The parties can ask to be restored to their pre-contractual position in the law court.
3. Injunction: The injured party can obtain a court injunction which is a mandatory order.
4. Justice: This is when the injured party sues to re-enforce the contract.

 

EVALUATION:   1. Explain each type of contract under the class

2. List and explain the methods by which contracts can be terminated
3. Explain the meaning of breach of contract
4. Outline the remedies for a breach of contract

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively