Essay On Contract Law

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Contract Law A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke, …show more content…

Generally the price is fixed by the person who has made the offer but sometimes negotiation take place between two parties and then the price at which both parties agree is paid by the offeree. It is essential that the paid price should be that on which both parties agrees otherwise the contract will be considered as void. Some problems such as mistake, duress and non est factum can prevent mutuality between two parties. The case of Petelin v Cullen gives a better understanding about mistake and non est factum. In this case Petelin was deceived and was made to sign a document written in English but Petelin could not understand English, so the court announced that the contract was not enforceable. In the given case, both Hevvy and Traynor mutually agreed on the term that Traynor will provide training sessions to Hevvy at the rate of $30 per session. (Sweeney, O 'Reilly and Coleman, 2010) Insurable Interest/ …show more content…

There are certain elements that are covered in the concept of capacity such as mental disorder, intoxication, minors and so on. Mental Disorder: This states that the mind of the person involved in the contract should be stable at the time of making of the contract. The person must have enough understanding that he can make decisions otherwise the contract will be null and void. Intoxication: This means that the parties to the contract should not be under the influence of any alcoholic product such as drugs or drinks at the time of making of the contract. The case of Blomley v Ryan can be a good example of Intoxication. In this case Blomley was to purchase a farm from Ryan and at the time of contract Ryan was under the influence of alcohol so the contact was not enforceable. Minors: The Australian law restricts the entry of Minors in the formation of the contract. So any contract made with the person under the age of 18 will be considered as voidable contract. (Clarke, 2016) In the given case of Hevvy and Traynor, nothing is mentioned about the state of mind of both the parties. So it is assumed from the scenario that both the parties have legal capacity to form a

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