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ere the price is marked up in exchange for allowing the buyer to pay over time for example with monthly payments a contract with deferred payment being known as bai muajjal additionally islamic law imposes several legal conditions on the process of establishing a waqf a type of patrimony of affectation similar to a trust a waqf is a contract therefore the founder called al wāqif or al muḥabbis in arabic must be of the capacity to enter into a contract for this the founder must be an adult be sound of mind capable of handling financial affairs not an undischarged bankrupt although waqf is an islamic institution being a muslim is not required to establish a waqf and non muslims may establish a waqf finally if a person is fatally ill the waqf is subject to the same restrictions as a will in islam 179 furthermore the property called al mawqūf or al muḥabbas used to found a waqf must be objects of a valid contract the objects should not themselves be haram e g wine or pork these objects should not already be in the public domain public property cannot be used to establish a waqf the founder cannot also have pledged the property previously to someone else these conditions are generally true for contracts in islam 179 the beneficiaries of the waqf can be persons and public utilities the founder can specify which persons are eligible for benefit such the founder s family entire community only the poor travelers public utilities such as mosques schools bridges graveyards and drinking fountains can be the beneficiaries of a waqf modern legislation divides the waqf as charitable causes in which the beneficiaries are the public or the poor and family waqf in which the founder makes the beneficiaries his relatives there can also be multiple beneficiaries for example the founder may stipulate that half the proceeds go to their family while the other half go to the poor 179 valid beneficiaries must satisfy the following conditions 179 they must be identifiable while most schools of islamic jurisprudence require that least some of the beneficiaries must also exist at the time of the founding of the waqf the mālikīs hold that a waqf may exist for some time without beneficiaries whence the proceeds accumulate are given to beneficiaries once they come into existence an example of a non existent beneficiary is an unborn child the beneficiaries must not be at war with the muslims but are not themselves required to be muslim the beneficiaries may not use the waqf for a purpose in contradiction of islamic principles a waqf s declaration of founding is usually a written document accompanied by a verbal declaration though neither are required by most scholars whatever the declaration most scholars t hold that it is not binding and irrevocable until actually delivered to the beneficiaries or put in their use once in their use however the waqf becomes an institution in its own right 179 under singaporean law every mosque is required to be created and administered as a waqf and rules governing waqfs are prescribed in the administration of muslim law act 176 convention on contracts for the international sale of goods edit main article united nations convention on contracts for the international sale of goods in the vast majority of jurisdictions the convention on contracts for the international sale of goods cisg governs contracts concerning the international sale of goods the cisg facilitates international trade by removing legal barriers among state parties known as contracting states and providing uniform rules that govern most aspects of a commercial transactions such as contract formation the means of delivery parties obligations and remedies for breach of contract 180 unless expressly excluded by the contract 181 the convention is automatically incorporated into the domestic laws of contracting states consequently the criteria for the creation of contracts for the international sale of goods are substantially harmonised among civil common and mixed law jurisdictions around the world the cisg applies to contracts of the sale of goods between parties whose places of business are in different states when the states are contracting states united nations convention on contracts for the international sale of goods article 1 1 a given the significant number of contracting states this is the usual path to the cisg s applicability the cisg also applies if the parties are situated in different countries which need not be contracting states and the conflict of law rules lead to the application of the law of a contracting state 182 for example a contract between a japanese trader and a brazilian trader may contain a clause that arbitration will be in sydney under australian law 183 with the consequence that the cisg would apply a number of states have declared they will not be bound by this condition 184 the cisg is intended to apply to commercial goods and products only with some limited exceptions it does not apply to personal family or household goods nor does it apply to auctions ships aircraft 185 or intangibles 186 and services 187 the position of computer software is controversial and will depend upon various conditions and situations 188 189 importantly parties to a contract may exclude or vary the application of the cisg 190 under the cisg an offer to contract must be addressed to a person be sufficiently definite that is describe the goods quantity and price and indicate an intention for the offeror to be bound on acceptance 191 the cisg does not appear to recognise common law unilateral contracts 192 but subject to clear indication by the offeror treats any proposal not addressed to a specific person as only an invitation to make an offer 193 further where there is no explicit price or procedure to implicitly determine price then the parties are assumed to have agreed upon a price based upon that generally charged at the time of the conclusion of the contract for such goods sold under comparable circumstances 194 generally an offer may be revoked provided the withdrawal reaches the offeree before or at the same time as the offer or before the offeree has sent an acceptance 195 some offers may not be revoked for example when the offeree reasonably relied upon the offer as being irrevocable 196 the cisg requires a positive act to indicate acceptance silence or inactivity are not an acceptance 197 the cisg attempts to resolve the common situation where an offeree s reply to an offer accepts the original offer but attempts to change the conditions the cisg says that any change to the original conditions is a rejection of the offer it is a counter offer unless the modified terms do not materially alter the terms of the offer changes to price payment quality quantity delivery liability of the parties and arbitration conditions may all materially alter the terms of the offer 198 capacity edit main article capacity law in all systems of contract law the capacity of a variety of natural or juristic persons to enter into contracts enforce contractual obligations or have contracts enforced against them is restricted on public policy grounds consequently the validity and enforceability of a contract depends not only on whether a jurisdiction is a common civil or mixed law jurisdiction but also on the jurisdiction s particular policies regarding capacity for instance very small children may not be held to bargains they have made on the assumption that they lack the maturity to understand what they are doing errant employees or directors may be prevented from contracting for their company because they have acted ultra vires beyond their power another example might be people who are mentally incapacitated either by disability or drunkenness 199 while specifics vary between jurisdictions article 39 of the philippine civil code provides a comprehensive overview of the most typical circumstances resulting in lost or diminished juridical capacity 200 age mental disability the state of being a deaf mute penalty absence u insolvency and trusteeship each contractual party must be a competent person having legal capacity the parties may be natural persons individuals or juristic persons corporations an agreement is formed when an offer is accepted the parties must have an intention to be legally bound and to be valid the agreement must have both proper form and a lawful object in england and in jurisdictions using english contract principles the parties must also exchange consideration to create a mutuality of obligation as in simpkins v pays 201 in the united states persons under 18 are typically minor and their contracts are considered voidable however if the minor voids the contract benefits received by the minor must be returned the minor can enforce breaches of contract by an adult while the adult s enforcement may be more limited under the bargain principle citation needed promissory estoppel or unjust enrichment may be available but generally are not meanwhile in singapore while individuals under the age of 21 are regarded as minors sections 35 and 36 of the civil law act 1909 provide that certain contracts entered into by minors aged 18 and above are to be treated as though they were adults 202 additionally the minors contracts act 1987 as applicable in singapore and in england and wales provides that a contract entered into by a minor is not automatically unenforceable and that a court may if it is just and equitable to do so require the minor defendant to transfer to the plaintiff any property acquired by the defendant under the contract or any property representing it 203 in addition to age a party to a contract may lack capacity on the grounds of mental illness or senility under singapore s mental capacity act 2008 for example a person lacks capacity in relation to a matter if at the material time the person is unable to make a decision for himself or herself in relation to the matter because of an impairment of or a disturbance in the functioning of the mind or brain 204 where an individual lacks capacity on grounds of mental illness or senility a relative or other responsible person may obtain a lasting power of attorney to make decisions concerning the personal welfare of the person lacking capacity the property and financial affairs of the person or both 205 questions as to whether an individual has the capacity to make decisions either generally or with regard to a particular matter or class of matters are generally resolved by a judicial declaration and the court making the declaration may appoint one or more individuals to act as conservators american english or deputies commonwealth english for the person lacking capacity 206 under the civil code of the republic of china a contract act purportedly entered into by an individual lacking capacity for any reason is void 207 unless ratified by the individual s guardian or conservator 208 only a lawful guardian or conservator of such an individual may assent to a juridical act on behalf of a person lacking capacity 209 additionally where a party lacking capacity fraudulently deceives the other party into believing that the first party had capacity to enter a contract the contract is valid despite such incapacity 210 contractual terms edit main article contractual term a contractual term is a provision forming part of a contract 211 each term gives rise to a contractual obligation breach of which can give rise to litigation not all terms are stated expressly and some terms may carry less legal weight as they are peripheral to the objectives of the contract 212 classification of terms edit contractual terms may be given different names or require different content depending upon the context or jurisdiction 213 terms establish conditions precedent english but not necessarily non english common law distinguishes between important conditions and warranties with a breach of a condition by one party allowing the other to repudiate and be discharged while a warranty allows for remedies and damages but not complete discharge 214 215 whether or not a term is a condition is determined in part by the parties intent 215 216 in a less technical sense however a condition is a generic term and a warranty is a promise 214 not all language in the contract is determined to be a contractual term representations which are often precontractual are typically less strictly enforced than terms and material misrepresentations historically was a cause of action for the tort of deceit warranties were enforced regardless of materiality in modern united states law the distinction is less clear but warranties may be enforced more strictly 217 statements of opinion may be viewed as mere puff in specific circumstances these terms are used differently for example in english insurance law violation of a condition precedent by an insured is a complete defence against the payment of claims 218 160 in general insurance law a warranty is a promise that must be complied with 218 in product transactions warranties promise that the product will continue to function for a certain period of time in the united kingdom the courts determine whether a term is a condition or warranty for example an actress obligation to perform the opening night of a theatrical production is a condition 219 but a singer s obligation to rehearse may be a warranty 220 statute may also declare a term or nature of term to be a condition or warranty for example the sale of goods act 1979 s15a 221 provides that terms as to title description quality and sample are generally conditions the united kingdom has also contrived the concept of an intermediate term also called innominate first established in hong kong fir shipping co ltd v kawasaki kisen kaisha ltd 1962 representations versus warranties edit statements of fact in a contract or in obtaining the contract are considered to be either warranties or representations traditionally warranties are factual promises which are enforced through a contract legal action regardless of materiality intent or reliance 217 representations are traditionally precontractual statements that allow for a tort based action such as the tort of deceit if the misrepresentation is negligent or fraudulent 222 historically a tort was the only action available but by 1778 breach of warranty became a separate legal contractual action 217 in u s law the distinction between the two is somewhat unclear 217 warranties are viewed as primarily contract based legal action while negligent or fraudulent misrepresentations are tort based but there is a confusing mix of case law in the united states 217 in modern english law sellers often avoid using the term represents in order to avoid claims under the misrepresentation act 1967 while in america warrants and represents is relatively common 223 some modern commentators suggest avoiding the words and substituting state or agree and some model forms do not use the words 222 however others disagree 224 s...
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