Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Nature and forms of contract
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Nature and forms of contract
A contract is a written or expressed agreement between two or more parties to perform a service, provide a product or commit an act for a valuable benefit known as consideration and is enforceable by law. The agreement will create rights and obligations that may be enforced in the court. There are several types of contracts, and each have specific terms and conditions. We perform contracts every time and everywhere without knowing we are into it for example buying and selling of goods from a supermarket, taking a bus etc. For a contract to be made there must be an offer, offeree and offeror. An offer is a proposal to contract which is accepted completes a contract. An Offeror is the maker of an offer while an offeree receives the offers made by an offeror.
There are many types of contracts but the main are Bilateral Contracts and Unilateral Contracts. A Bilateral contract is a
…show more content…
For a contract to be made there should be acceptance from the other party or person. There are several rules of acceptance they are the acceptance must be communicated to the offeree, the terms of the acceptance must exactly match the terms of the offer, the agreement must be certain. Communication of an acceptance can be by oral or written. Postal Rule states that acceptance by post takes effect immediately it is being posted rather than when communicated. The principle of postal rule doesn’t apply to internet based communication system.
Consideration is also a very important element in the contract. Consideration in a contract means that the other person will be giving back something in exchange. It would be consider as an exchange which would be made between the promisee and promissor. There should be consideration in a contract so that it would be legally valid. Consideration must be sufficient but need not to be adequate. There are rules covering the law of consideration, they are:
1. The consideration must not be
Both party must give consideration. In unilateral contract, the offeror’s promise must be exchanged with the offeree’s performance.
I interpret consideration as each party must receive something in value as a result of entering this contract. Consideration is a promise to do something that you are not legally obligated to do or perform. Examples of consideration would an Adult film star who signs a contract to perform on camera. As a result of this she is paid an agreed upon amount and receives portions of the video sales. The other party in this type of contract would receive the majority of the video sales for entering this contract. In the end, both parties receive a substantial amount of money; they did not have prior to entering this contract.
CONTRACTS WHAT IS A CONTRACT? A contract is a legally binding agreement between two parties. For Kappa’s purposes, contracts often come up when a chapter officer is attempting to obtain the services of a vendor (e.g., DJs, venues, caterers, etc.). Examples of things that are not called “contracts” but still have the same legally binding effect are: invoice, terms and conditions, agreement, lease, etc.
In my opinion, Consideration is the essential element for the formation of contract. As we know that a contract is based on the promise and for there must be two parties to the contract a promisor and a promisee and when both the parties gain something from one and another then the gain or the benefit received by the parties is called consideration. It should be something which has some value in the eyes of law and it is not one sided as there are two parties of the contract so the consideration comes from both the sides and in case, if it's one sided that will be considered as a gift and the law also does not take into account. if something is done in terms of promise, love, affection and this can be seen from the case Currie v. Missa (1875) where one of the judge also gave importance to the interest, profit, benefits arising to the parties. In bilateral type of contract, an agreement contains mutual promises and sufficient consideration of the parties to form a contract. Whereas in unilateral type of contract, an agreement in which one party promises to ot...
(Insert Citation p 305). Consideration refers to the attained good or service agreed upon by each party under a contract. Contractual Capacity is the legal ability to enter into a binding agreement. Some factors that affect contractual capacity are: age, mental health and agreements under alcohol intoxication. Last but not least is the legal object, which means that for a contract to be enforceable it must be of legal intent and comply with public policy. If all of these factors are present in a contract, we can conclude that a binding contractual agreement exists and it is enforceable by law.
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...
The English contract Offer and Acceptance General principles There are three basic essentials to the creation of a contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of an Offer. This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons, or to the world at large.
A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit.
A contract is formed when two or more parties make an agreement with the consent of both parties. The meaning of contract is defined in section 2 (a) . Contracts create mutual obligations enforceable by law for an agreement between parties involved (KIM, 2017). The basic elements required to form a legally enforceable contract are offer, acceptance of offer, intention to create legal relations, consideration, certainty and legal capacity.
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.
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,
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 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.
Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form