NOM121: Contract Law

The purpose of this Thematic Unit is the understanding of Cypriot contract law. The T.U.. begins with the study of the general principles of Cypriot contract law with emphasis on the constitutional protection of the freedom of contract. The fundamental principles governing the validity of contract are also examined. The concept of agreement (proposal, acceptance, and revocation of proposal or acceptance) is analysed. Then, additional issues regarding the validity of the contract are investigated, such as the legal capacity of the parties, the existence of certainty, the legality of the contract, the contractual intend, and, finally, the thorny issue of consideration and estoppel. Next, the rules for the construction of the contract are analysed, with emphasis on the distinction between term and representation, the classification of implied terms, and the distinction between terms and conditions. In addition, there is extensive reference to the issue of incorporation and protection against abusive clauses. Further, the categories of defects of the agreement are presented: misrepresentation, undue influence, duress and common mistake. Then, issues of execution of the contract are examined (when time is of the essence or not, partial execution, non-execution and frustration of contract). Finally, the principles governing compensation in case of breach of contract are proposed.