Essay On Formation Of A Contract

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What is a contract? 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. 1. Formation of a contract A contract actually starts when the other party makes an offer (offeror), and then it is accepted by …show more content…

• Possibility of a certain or ascertainable performance – contract must be physicaly capable of being executed. • Formalities – if formalities are prescribed for the formation of the contract , they must be observed. (a) The express terms , that parties put down in the contract that is in writing and stated in the contract and cannot be ignored . (b) Implied terms – they are not expressed but they are adopted as “obvious” an individual must comply with (e.g) if buying a product and it is not in a good taste the consumer has the right to return it to the owner for exchange or refund. Termination of a contract when can it be ended • Breach of a contract – failure or refuse to perform than the contract has been breach than the other party has the right to terminate the contract. • Misrepresentation – giving a false statement to the other party with the intentions to benefit or to exploit the other party than the law can end the contract in that case. • Damages – if the other party cause’s drastic damages that cost the other party or affect it negatively than the other party can sue and take them to court of law, and the court may claim that the affected party may be paid and be taken back to its original position as it was

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