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Contract Law in Hong Kong: An Essential Guide for Business Professionals

Italo Calvino

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Published in Contract Law In Hong Kong: An Introductory Guide Second Edition

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Contracts are the foundation of business transactions. They establish the terms and conditions under which parties agree to exchange goods, services, or money. In Hong Kong, the law of contract is governed by the Contracts (First Party Rights) Ordinance (Cap. 623) and the common law.

This article provides a comprehensive overview of the key principles of contract law in Hong Kong. It will be of interest to business professionals, lawyers, and anyone else who needs to understand the legal framework governing contracts in Hong Kong.

Contract Law in Hong Kong: An Introductory Guide, Second Edition

by Stephen D. Mau

5 out of 5

Language	:	English
File size	:	1642 KB
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Print length	:	183 pages

Formation of a Contract

A contract is formed when there is an offer, an acceptance, and consideration.

Offer: An offer is a proposal to enter into a contract. It must be clear, definite, and communicated to the other party.
Acceptance: Acceptance is the agreement to the terms of the offer. It must be unconditional and communicated to the other party.
Consideration: Consideration is the exchange of value between the parties. It can be anything of value, such as money, goods, or services.

Once a contract is formed, it is legally binding on the parties. This means that the parties must perform their obligations under the contract or face legal consequences.

Terms of a Contract

The terms of a contract are the specific obligations that the parties have agreed to perform. These terms can be express or implied.

Express terms are those that are stated explicitly in the contract. They can be written or oral.
Implied terms are those that are not stated explicitly in the contract but are implied by law or custom.

The terms of a contract are important because they determine the rights and obligations of the parties. It is important to make sure that the terms of a contract are clear and unambiguous.

Breach of Contract

A breach of contract occurs when one party fails to perform its obligations under the contract. This can be a material breach or a minor breach.

Material breach: A material breach is a breach that goes to the heart of the contract. It makes it impossible for the other party to receive the benefit of the contract.
Minor breach: A minor breach is a breach that does not go to the heart of the contract. It does not make it impossible for the other party to receive the benefit of the contract.

The remedies for breach of contract vary depending on the type of breach. For a material breach, the other party may be entitled to rescind the contract and claim damages. For a minor breach, the other party may be entitled to claim damages only.

Contract law is a complex and important area of law. It is essential for business professionals to have a basic understanding of the key principles of contract law in Hong Kong. This article has provided a comprehensive overview of the formation, terms, and breach of contracts in Hong Kong.

For more information on contract law in Hong Kong, please refer to the following resources: