LO1 Understand the elements of a valid contract in a business context 1.1 Explain the importance of the essential elements required for the formation of a valid contract. There are several essential elements that are needed in the formation of a contract namely offer and acceptance, capacity, consideration, intention to create legal relations, consideration and privity of contract. Offer & Acceptance An offer is the willingness to contract with a specific set or terms made by the offeror that if accepted that person or individual is bound by a contract. Acceptance An acceptance is the absolute agreement to a contract and its terms along with its offer. The contract must reflect the original offer made from start. Capacity This is the total completion of accepting the terms of the contract from both parties without having any legal restrictions or any other discrepancies in doing so. Consideration This is the exchange of some goods or services that is a part of the contractual agreement by both parties. Privity to Contract This is a preventative element whereas it acts as a security to state that only the [parties involve in the contract is liable to sue each other if a breach of contract should occur. This means that no third party can be involved in the contract for lawsuits or make any claims other than the two parties involved in the contract. 1.2 Discuss the impact of different types of contracts There are several types of contracts namely: Bilateral & Unilateral Expressed & Implied Valid & Enforceable Voidable & Void Executed & Executory Contracts come in the form of verbal, written, face to face. Each of these forms has their respectable impacts. When performing a contract face to face it i... ... middle of paper ... ...sidered to be legit and trusting. Contracts can be written, verbal and face to face; these contracts have terms and conditions that are very important and if breached are accompanied by different consequences whether serious or trivial. Neglecting contracts and agreements can cause serious injury to someone’s property, reputation or livelihood. In a business format vicarious liability happens all the time where an employee defaces a company via tampering with their products or establishing misconduct under the company name and brand outside of the company’s presence (company property). Laws play a very integral role in contracts as it is through this medium that justice can be served with reason and understanding from the law requirements of this country. There are different types of contracts for different types of situations and agreements.
The four elements to a contract are an offer, an acceptance, an intention to create a legal relationship, and a consideration (usually money). The first and second element of a contract is the agreement, which is made up of an offer and an acceptance of a contract. The elements of an offer are (1) serious intent
The second element would be offer and acceptance. The parties entering the contract must be satisfied with the offer that is being made and the other party must be willing to accept the offer.
Most if not all managers will likely find themselves working with contracts on a consistent basis. Oftentimes a manager will be presented with contracts that they have to sign or review for the purpose of employing an applicant. Contracts are also used when in the procurement merchandises for the business or other purposes. Whatever is the case, managers and others have to comprehend the process of contract law.
Acceptance of an offer must be valid.Acceptance must match to the accurate terms of the offer.If parties have the same opinion to the terms of a contract then it will amount to form a valid contract. A valid acceptance in contract is establish a valid agreement. The acceptance must be communicate to the person
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,
The article identified multiple tips for forming contracts which include the following. Clearly specify the terms of performance, what responsibilities each party has, when tasks must be completed, and what penalties, if any, will come as a result of failure to perform. Determine how the other party must handle any confidential information. Write a termination clause and what penalties may be assessed for early termination. Reduce the exposure of UCC warranties if the transaction involves goods. Limit the changes that can be made to the contract and in what form, oral or written. Finally, address how the enforcement of the contract is to be handled; this should include whether disputes are to be arbitrated and who bears the legal costs and attorney fees. Of these tips for improving contracts and reducing risk, I believe they are all equally important. One should take a holistic approach to utilizing each of these tips to mitigate the risks of losing future legal disputes arising from a contract.
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 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
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.
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.