Three Types Of Contract

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A contract is a legally binding agreement between two or more parties which is enforceable by law. A contract can be defined as a promise or set of promises. A contract is an agreement so, it is not really necessary to be in writing, it could be made orally as well. There should be free consent of parties when they enter into the contract. Offer, acceptance and consideration are three essential elements what every contract should have. In every contract, one party needs to offer and other party needs to accept the offer. Moreover, for a contract to be valid, there must be consideration. The party who makes the offer is called as offeror and the other party whom it is made is called the offeree. Offer is a proposal or promise made by one party…show more content…
Mistake either rescind the agreement or negate the contract........ There are three types of mistakes such as: Common mistake what is made by both parties where both parties have relied on that mistake when entering into the contract. Mutual mistake is a common misunderstanding between the parties when entering into a contract and it is a wrong belief shared by both parties. Unilateral mistake is an incorrect belief of one party where one party is mistaken and the other knows about the mistake. However all of these types of mistakes can render a contract void or voidable. Duress: It occurs when one party exercise improper pressure on another party and that party feels like they have to choice apart from entering into the contract where that party enters into a contract as a result of threats, physical violence, force etc. Duress makes the contract voidable...... Duress can take various forms for instance, threats of violence, threats of unlawful restraint, threats to property etc ....Moreover sometimes duress arises when one…show more content…
A contract is discharge when neither party has any obligations under contract. It is the act of making a contract void. A contract can be discharged by performance when both parties have performed their contractual obligation what they have agreed to do and the contract comes to an end. However, if one party dose not perform properly then other party can claim for damages. . In addition, a contract can be discharged by agreement when both parties agree to cancel the contract and they have no obligation towards one another under the contract terms. There must have accord and satisfaction where accord refers agreement, each party has to agree to rescind the contract and satisfaction means consideration what is an essential element for making a contract and nullifying a contract. Moreover, contract can be discharged by frustration when a contract in ended because it is frustrated. Sometimes circumstances change after a contract is made and it becomes impossible to carry out the terms of the contract for example there is a contract to buy a mobile phone but before it can be handed over, it is stolen by

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