Hello everyone, today we are going to discuss what is contact? Elements of a legal contact. So let’s start we hope you will enjoy this session. What is contract? A contact is defined as ‘An agreement which is enforceable by law is called contract”. This definition points out two factors of contract first one there must be an agreement and second is the agreement must be enforceable by law. When two or more parties agrees to do or perform certain things is called agreement. So we can say that every contract is an agreement but all agreements are not contracts. For example, an agreement to marry someone is an agreement intended to create legal relationship and is therefore a contract. But an agreement to restrain someone marriage is not a contract …show more content…
These condition are called essential elements of a legal contract. Now we discuss these elements Offer and acceptance: For an agreement to be enforceable by law, there have to be a lawful by one parties and other party must accept that offer lawfully. There are some rules regarding making an offer and accepting that offer. We will discuss about these rules regarding offer and acceptance in our next post. So keep visiting. Intention to create legal relationship: A contract doesn’t exist simply because there is an agreement between parties. There must be an intention between parties that agreement shall create legal relationship. For example, an agreement to dine at a friend’s house is not an agreement intended to create legal relationship but an agreement to marry someone is an agreement intended to create legal relationship therefore it is a contract. Lawful consideration: An agreement to do something for nothing is not enforceable by law. An agreement is enforceable by law only when each parties gives something and gets …show more content…
If there is absent of genuine consent for example if the agreement is establish by fraud, mistake, misrepresentation, undue influence etc. then it will not be enforceable the law. A person guilty for coercion, undue influence cannot enforce the agreement. But other party or parties can enforce it, depends on certain rules. Legality of the object: The object for which agreement has been established have to be legal in order to make it valid contract. An agreement based on a illegal object obviously is not enforceable by law. Certainty: An important element to build a legal contract is certainty. In general rules, court will not enforce if the agreement is vague or incomplete. It must be possible to ascertain the meaning of the agreement. Possibility of performance: The agreement must be capable of being performed. A promise to do an impossible thing can not be enforced by court. For example, Alex agrees with Taylor to discover treasure by magic. Such agreements are not enforceable by law. Void agreements: An agreement made must not be have been declared to be void. Basically there are five categories of agreement which are expressly declared void. Such as (a) Agreement in restraint to
Legally enforceable "A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party." (Scheffel, Evan, and Jane P. Mallor, 2010. Chapter 9, Page 321) The Lambert v. Barron case showed us an example of what happens when a contract does not contain all elements to become a legally enforceable contract. Mr. Barron did not accept the offer, Mr. Lambert made no promise to recover money from the disputed contracts owed to Mr. Barron, so there was no promise to perform.
However, the fourth element, which is "legal object," may not be satisfied between Sam and the chain store because there was nothing in writing, nothing was “drawn.” An oral promise would make the contract invalid if the completion of that promise will take more than a year from the date of agreement. However, if the chain store has written proof confirming Sam 's promise, for example, advertisements, invoices that the store only prepares in the regular course of business after an oral promise for a product delivery has been made, a court may consider Sam 's oral promise legally binding. Then it would be considered a "primary obligation" (since there was a debt incurred in anticipation of the sale of his invention at their stores). In that event, the contract does not need to be in writing to be enforced since primary obligations are not within the statute of frauds. So if the chain store does not get their 1000
A contract is a written or spoken agreement, especially one about employment, sales, or real estate, which is intended to be enforceable by law. In order to form a legally binding contract the general requirements of a contract must be present, for example there must have been an offer, acceptance and an intention to form a legally binding contract. Without all of these elements a contract will not be legally binding. If all these elements are in place a contract will be legally binding, however, the law presumes that certain people do not have the power to enter into a contract, as is the case with Nancy.
For the contract to be enforceable, the contracting parties must have a common mind on the terms given in the contract. This means that what the contracting party holds the contract to be must be the same to what the party being offered the contracts hold to be. In this sense, the two must agree at the same time, to the same idea. If one party is misled, the contract is voidable. Communication between the parties are used to determine whether a contract is voidable or not. In this case, the communication was oral which can still be used to determine the existence of the contract.
Verbal agreements in the modern day have been substituted by contracts. These are agreements between parties that can stand in a court of law. In the case of default by the parties, the contract terms can be used in court of law in order to serve justice to the parties. In that regard, contracts are developed by legal and professional experts to ensure that all the considerations are placed in the contract. In the process, the loopholes that may be anticipated are addressed comprehensively in order to avoid a default of the contract. Despite this, contracts are terminated in the day to day life. It is instigated by various reasons between the parties causing the termination of the contract. Using the case
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.
Intention to create legal relations can be defined as follows. ‘An agreement will only become a legally binding contract if the parties intend this to be so. This will be strongly presumed in the case of business agreements but presumed otherwise if the agreement is of a friendly, social or domestic nature.’ Source (HNC unit 5 Business law course book) In determining whether the parties intend their agreements to be legally binding the court is guided by two presumptions. Parties to a domestic or social agreement do not intend to be legally bond. Parties to a business agreement intend to be legally bond. These are presumptions only and can be rebutted by sufficient evidence to the contrary. Domestic and Social Agreements Balfour v Balfour (1919) Merritt v Merritt (1976) Simpkins v Pays (1955) Business Agreements Jones v Vemons Pools (1938) Source (HNC Business law notes) One of the essential elements in the creation of a binding contract, this intention is implied by the fact that it is not expressly denied. If expressly denied (as in a so-called gentlemen's agreement) the contract may not be enforceable. Consideration {text:bookmark-start} {text:bookmark-end} If you look at a legal agreement or contract, you will generally see a phrase in the opening paragraph indicating that the parties agree on an amount of money or "other good and valuable consideration." The concept of consideration has a long history in the law, but simply means something of value. An exchange of consideration between the parties to an agreement is necessary fo...
An offer can be made to one person or a group of persons or to the world at large. The offeror is bound to fulfil the terms of his offer once it is accepted. The offer may be made in writing, by words or conduct.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
An Agreement consist of rights and obligations that are recognized and enforceable by the law.
The most authoritative definition of consideration stems from Currie v Misa in which the judgement of Lord Justice Lush defines consideration as “some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.” Consideration is therefore, in essence, the price for which a promise is bought. Normally, a promise cannot be contractually binding unless it is supported by some form of consideration and there are numerous rules surrounding it’s successful operation. These include: consideration must move from the promisee, consideration must not be past and consideration must be sufficient but need not be adequate.
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,
In English Law consideration is one of the three main areas of an enforceable contract. It may be defined as an act, forbearance or promise made by a single party that constitutes the price for which the promise of another, is bought. In simple terms, the basic understanding of consideration may be seen as a ‘give and take’ tactic between two parties.
“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”.
The element of agreement is one of the three essential requirements for the formation of a contract before a contract can come into existence. The element of agreement can be referred to as the ‘meeting of the minds’. An agreement must be reached on the essential terms needed for a workable transaction. The parties must have reached agreement on any matter that they have indicated must be agreed upon before the contract is completed. An agreement can be met by means of offer and acceptance.