16 Sep 2004
16 Sep 2004
PART 1: GENERAL..........................................................................................................................................................1
1. Title .......................................................................................................................................................................1
2. Legislative Authority..............................................................................................................................................1
3. Application of the Law...........................................................................................................................................1
4. Date of enactment.................................................................................................................................................1
5. Commencement......................................................................................................................................................1
6. Interpretation ........................................................................................................................................................1
PART 2: CONTRACTS GENERALLY ..................................................................................................................................2
7. Choice of governing law and jurisdictions.............................................................................................................2
8. Freedom of and capacity to contract ....................................................................................................................2
9. No form required ....................................................................................................................................................2
10. Binding character of contract .............................................................................................................................2
11. Exclusion or modification by the parties..............................................................................................................2
12. Usages and practices ..........................................................................................................................................2
13. Notice ..................................................................................................................................................................3
PART 3: FORMATION ......................................................................................................................................................4
14. Manner of formation ............................................................................................................................................4
15. Definition of offer ................................................................................................................................................4
16. Withdrawal of offer ..............................................................................................................................................4
17. Revocation of offer...............................................................................................................................................4
18. Rejection of offer.................................................................................................................................................4
19. Mode of acceptance.............................................................................................................................................4
20. Time of acceptance..............................................................................................................................................5
21. Acceptance within a fixed period of time............................................................................................................5
22. Late acceptance; delay in transmission .............................................................................................................5
23. Withdrawal of acceptance ..................................................................................................................................5
24. Modified acceptance............................................................................................................................................5
25. Writings in confirmation ......................................................................................................................................5
26. Conclusion of contract dependent on agreement on specific matters or in a specific form ..............................6
27. Contract with terms deliberately left open .........................................................................................................6
28. Freedom to negotiate .........................................................................................................................................6
29. Duty of confidentiality .........................................................................................................................................6
30. Merger clause ......................................................................................................................................................6
31. Written modification clauses...............................................................................................................................6
32. Contracting under standard terms.......................................................................................................................6
33. Conflict between standard terms and non-standard terms.................................................................................7
34. Battle of forms......................................................................................................................................................7
PART 4: VALIDITY...........................................................................................................................................................8
35. Validity of mere agreement..................................................................................................................................8
36. Initial impossibility...............................................................................................................................................8
37. Relevant mistake .................................................................................................................................................8
38. Error in expression or transmission.....................................................................................................................8
39. Remedies for non-performance ..........................................................................................................................8
40. Fraud....................................................................................................................................................................8
41. Threat...................................................................................................................................................................9
42. Confirmation ........................................................................................................................................................9
43. Loss of right to avoid...........................................................................................................................................9
44. Notice of avoidance.............................................................................................................................................9
45. Time limits ...........................................................................................................................................................9
46. Partial avoidance .................................................................................................................................................9
47. Retroactive effect of avoidance ..........................................................................................................................9
48. Mandatory character of the provisions................................................................................................................9
PART 5: INTERPRETATION ............................................................................................................................................10
49. Intention of the parties......................................................................................................................................10
50. Interpretation of statements and other conduct...............................................................................................10
51. Relevant circumstances ....................................................................................................................................10
52. Reference to contract or statement as a whole ...............................................................................................10
53. All terms to be given effect ...............................................................................................................................10
54. Interpretation against party responsible...........................................................................................................10
55. Linguistic discrepancies ...................................................................................................................................11
PART 6: CONTENT.........................................................................................................................................................12
56. Express and implied obligations........................................................................................................................12
57. Implied obligations.............................................................................................................................................12
58. Co-operation between the parties ....................................................................................................................12
59. Duty to achieve a specific result; duty of best efforts .....................................................................................12
60. Determination of kind of duty involved ...............................................................................................................1
61. Determination of quality of performance ..........................................................................................................12
62. Price determination............................................................................................................................................13
63. Contract for an indefinite period .......................................................................................................................13
PART 7: PERFORMANCE ...............................................................................................................................................14
64. Time of performance .........................................................................................................................................14
65. Performance at one time or in instalments .......................................................................................................14
66. Partial performance ...........................................................................................................................................14
67. Order of performance .........................................................................................................................................14
68. Earlier performance............................................................................................................................................14
69. Place of performance.........................................................................................................................................15
70. Payment by cheque or other instrument .............................................................................................................1
71. Payment by funds transfer.................................................................................................................................15
72. Currency of payment ..........................................................................................................................................15
73. Currency not expressed .....................................................................................................................................16
74. Costs of performance.........................................................................................................................................16
75. Imputation of payments.....................................................................................................................................16
76. Imputation of non-monetary obligations...........................................................................................................16
PART 8: NON-PERFORMANCE.......................................................................................................................................17
77. Non-performance defined..................................................................................................................................17
78. Interference by the other party .........................................................................................................................17
79. Withholding performance...................................................................................................................................17
80. Cure by non-performing party............................................................................................................................17
81. Additional period for performance.....................................................................................................................17
82. Force majeure.....................................................................................................................................................18
83. Performance of monetary obligation .................................................................................................................18
84. Performance of non-monetary obligation..........................................................................................................18
85. Repair and replacement of defective performance ...........................................................................................19
86. Right to terminate the contract ........................................................................................................................19
87. Notice of termination..........................................................................................................................................19
88. Anticipatory non-performance ..........................................................................................................................19
89. Effects of termination in general ......................................................................................................................19
90. Restitution .........................................................................................................................................................20
91. Set-off................................................................................................................................................................20
PART 9: ASSIGNMENT...................................................................................................................................................21
92. Assignment of rights and obligations................................................................................................................21
93. Assignment of future rights...............................................................................................................................21
94. Limits on assignments and delegations ...........................................................................................................21
95. Contractual prohibition of assignment ..............................................................................................................21
96. Interpretation of words of assignment; effect of acceptance of assignment...................................................22
97. Contracts to assign in the future, or to transfer proceeds to be received .......................................................22
98. Defences against an assignee...........................................................................................................................22
99. Discharge of an obligor on assignment .............................................................................................................23
100. Substituted performance..................................................................................................................................23
101. Substituted contract .......................................................................................................................................23
102. Novation ..........................................................................................................................................................23
103. Accord and satisfaction ..................................................................................................................................23
PART 10: RIGHTS OF THIRD PARTIES ...........................................................................................................................25
104. Right of third party to enforce contractual term..............................................................................................25
105. Variation and rescission of contract ...............................................................................................................25
106. Defences available to promisor .......................................................................................................................26
107. Enforcement of contract by promisee..............................................................................................................27
108. Protection of promisor from double liability.....................................................................................................27
PART 11: DAMAGES .....................................................................................................................................................28
109. Right to damages ............................................................................................................................................28
110. Full compensation ...........................................................................................................................................28
111. Measure of damages........................................................................................................................................28
112. Certainty of harm..............................................................................................................................................28
113. Foreseeability of harm......................................................................................................................................28
114. Proof of harm in case of replacement transaction ..........................................................................................28
115. Proof of harm by current price .........................................................................................................................29
116. Harm due in part to aggrieved party.................................................................................................................29
117. Mitigation of harm.............................................................................................................................................29
118. Interest for failure to pay money .....................................................................................................................29
119. Interest on damages ........................................................................................................................................29
120. Manner of monetary redress.............................................................................................................................29
121. Currency in which to assess damages ............................................................................................................29
122. Agreed payment for non-performance ............................................................................................................30
123. Limitation ........................................................................................................................................................30
PART 12: AGENCY .......................................................................................................................................................31
124. Agency; principal; agent..................................................................................................................................31
125. General agent; special agent...........................................................................................................................31
126. Disclosed principal; partially disclosed principal; undisclosed principal........................................................31
127. Consent.............................................................................................................................................................31
128. Authority ..........................................................................................................................................................31
129. Creation of authority .......................................................................................................................................31
130. Apparent authority............................................................................................................................................32
131. Creation of apparent authority.........................................................................................................................32
132. Applicability of rules for interpretation of agreements ...................................................................................32
133. When incidental authority is inferred ..............................................................................................................32
134. Inference that agent is to act only for principal’s benefit ..............................................................................32
135. General principle of interpretation ..................................................................................................................32
136. Duty of care and skill .......................................................................................................................................32
137. Duty of loyalty...................................................................................................................................................32
138. Duty to account for profits arising out of employment ...................................................................................32
139. Duty not to act as adverse party without principal's consent.........................................................................33
140. Duty not to compete as to subject matter of agency.......................................................................................33
141. Duty not to act for one with conflicting interests ...........................................................................................33
142. Duty not to use or disclose confidential information ......................................................................................33
143. Period of employment ......................................................................................................................................33
144. Continuing duties after termination of agency ...............................................................................................33
145. Liability for loss caused ..................................................................................................................................33
146. Liability for things received in breach of duty of loyalty..................................................................................34
147. Liability for use of principal's assets ..............................................................................................................34
148. Principal's choice of remedies ........................................................................................................................34
149. Duty of indemnity ............................................................................................................................................34
150. When duty of indemnity exists.........................................................................................................................34
151. When no duty of indemnity...............................................................................................................................35
152. Ratification ......................................................................................................................................................35
153. Affirmation........................................................................................................................................................35
154. What acts can be ratified ................................................................................................................................35
155. Purporting to act as agent as a requisite for ratification ................................................................................35
156. Who can affirm.................................................................................................................................................35
157. Affirmation after rights have crystallised.........................................................................................................35
158. Effect of ratification ........................................................................................................................................36
159. Revocation of authority ...................................................................................................................................36
160. Liability based upon agency principles ...........................................................................................................36
161. Liability of disclosed or partially disclosed principal; general rule ................................................................36
162. Liability of disclosed or partially disclosed principal; apparent authority ......................................................36
163. Unauthorised acts of general agent.................................................................................................................36
164. Unauthorised acts of special agents...............................................................................................................36
165. Rights between third person and agent...........................................................................................................37
166. Defences of principal – in general...................................................................................................................37
167. Undisclosed principal; general rule .................................................................................................................37
168. Acts of general agents ....................................................................................................................................37
169. Acts of manager appearing to be owner .........................................................................................................37
170. Unauthorised acts of special agents...............................................................................................................37
171. Defences of undisclosed principal – in general...............................................................................................37
172. Power of agent to modify contract before disclosure of principal...................................................................38
173. Contracts, disclosed agency; general rule.......................................................................................................38
174. Defences of other party ...................................................................................................................................38
175. Rights between other party and agent ............................................................................................................38
176. Contracts, undisclosed agency; general rule ..................................................................................................38
177. Principal excluded from transaction.................................................................................................................38
178. Rights between other party and agent ............................................................................................................39
179. Defences of other party ...................................................................................................................................39
180. Status of agent as party to a contract ............................................................................................................39
181. Agent who warrants authority .........................................................................................................................39
182. Defences of agent ...........................................................................................................................................39
183. Agent surety for principal.................................................................................................................................39
184. Election by other party to hold principal; agency undisclosed........................................................................40
Schedule 1 Interpretation ........................................................................................................................................41
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