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
“all agreements are contracts if they were made by the fee consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void”.
Contracts are legal binding agreements whether verbally or written between two or more competent people. They also can be contractual agreements between businesses for services or goods, employment, trade, or lease. Regardless of what type of contract the parties are entering there are six elements they need to follow in order to come to a successful legal understanding. Contracts are built on the fundamentals of offer and acceptance, intention to create legal relations, consideration, legal capacity, consent, and illegal and void contracts. Any contract which represents false statements, unwarranted
The area of law that is required in order to form a legally enforceable contract is agreement.
When it comes to contracts, there are certain elements or requirements, which need to be met in order for the contract to be valid. Defined, a contract is “an agreement that can be enforced in a court; formed by two or more parties who agree to perform or refrain from performing some act now or in the future” (Hollowell & Miller, 2014, p. 110). With contract law, there is the enforcement of promises made between two parties, even if made in private. Additionally if a promise is made, there is the possibility of the obligation falling into a moral liability rather than a legal liability. All in all, when it comes to business agreements, contract laws will apply to avoid any possible problems that may arise.
Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.
A contract is a promise that the law will enforce. In situations where a promise is breached, the law provides remedies. A contract is created when a promise that is made by a party creates a duty. Contracts all contain common elements of Offer, Acceptance, and Consideration, and may have two more parties known as promisors, promises, or beneficiaries. For a contract to be enforceable it must be made by competent parties. For example, if a contract is entered into where one party is a minor, not mentally competent, or insane, even if the other person believes it to be an enforceable contract, it will likely be found to be invalid in court.
A contract is an agreement that can be enforced in court and is formed by two or more parties who agree to perform or to refrain from performing some act now or in the future (Miller, Cross, and Jentz 289). In other words, it is a set of legal promises between two or more people or businesses. Contract law includes the elements of a contract, genuineness of assent, fraud, duty to disclose, disaffirmance and good faith. In order for a contract to be valid, there are essential elements that it must have. These elements include: an agreement, consideration, legality, and capacity.
Most contracts never see a courtroom and they could easily be verbal unless there is a specific reason for the contract to be in writing. But when something goes wrong, a written contract protects both parties. If one party to a valid contract believes the other party has broken the contract the party being harmed can bring a lawsuit against the party who it believes has breached the contact (Murray, 2016). The legal process determines whether the contract has been breached or whether there are circumstances that negate the breach. The court will only hear a contract dispute if the contract is valid. The difference between a Contract and an Agreement is most people use the terms "contract" and "agreement", they are not the same. A contract is an agreement between parties creating obligations
Both parties must be competent to bind each other for a valid contract, like not less than from age of maturity, not unsound mind, must be related parties
Did you know that contracts can be classified by how and when they were formed so each contract has a strict set of ways they can be called? The types of contracts are bilateral contracts, unilateral, formal, informal, express, implied, executed, executory, valid, voidable, unenforceable and void.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
Contracts and agreements have many key differences. A contract is an agreement between two parties that is legally binding. In order for a contract to be valid and have legal standing, it must have four requirements; consideration, contractual capacity, and legality. Without all four of these requirements it is not considered a contract and has no legal standing. An agreement is an understanding or some type of arrangement between two or more parties and does not need to have the four requirements that a contract must have. Most of the time, agreements are informal and not enforceable by law.
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.