Business Law

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Business Law I. Explain with cases the essentials of a valid contract. Introduction Contract, in the simplest definition, a promise enforceable by law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them ordinarily making an offer and another accepting. If one of the parties fails to keep the promise, the other is entitled to legal recourse. The law of contracts considers such questions as whether a contract exists, what the meaning of it is, whether a contract has been broken, and what compensation is due the injured party. The Essentials of a Valid Contract The essential elements of the formation of a valid and enforceable contract can be summarized under the following headings: 1. There must be an offer and acceptance, which is in effect the agreement. 2. There must be an intention to create legal relations. 3. There is a requirement of written formalities in some cases. 4. There must be consideration (unless the agreement is under seal). 5. The parties must have capacity to contract. 6. There must be genuineness of consent by the parties to the terms of the contract. 7. The contract must not be contrary to public policy. In the absence of one or more of the essentials, the contract may be void, voidable or unenforceable. Among these seven elements only three are needed to be present under British law in order for a contract to be valid and enforceable. There must be an offer and acceptance, which is in effect the agreement. In order to decide whether a contract has come into being it is necessary to establish that there has been an agreement between the parties. In consequenc... ... middle of paper ... ...can Bar Association Guide to Consumer Law : Everything You Need to Know About Buying, Selling, Contracts, and Guarantees By American Bar Association. Paperback (January 1997). Anson's Law of Contract By William Reynell Anson, J. Beatson. Paperback (August 1998) Introduction to English Law : (Originally Elements of English Law) (Originally Elements of English Law) By William Geldart, et al. Paperback (November 1995) The Law (In Plain English) for Small Businesses By Leonard D. Duboff. Paperback (July 1998) Http://www.about.com (RE: Contracts) Http://www.infoseek.com (RE: Contracts) Http://encarta.msn.com (RE: Contracts) Http://www.ask.com (RE: Contracts) Http://www.go.com (RE: Contracts) Http://www.altavista.com (RE: Contracts) Http://www.mamma.com (RE: Contracts) Http://www.lawlinks.com

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