No contract can come into being unless the following features exist: an actual offer, an acceptance, consideration this means that each party will contribute something of a material value to the bargain and an intention to create legal relations.
The agreement can be formal, informal, written, or just plain understood. A contract is formed when there is a meeting of minds. There needs to be an offer and an acceptance , with the mirror principle applied- one must mirror the other precisely , otherwise there is no contract. It is also important to be able to determine between offers and invitation to treat.
A contract is an agreement which normally consists of an 'offer ' and an 'acceptance ' and involves the 'meeting of the minds ' or consensus between two or more parties with the intention to create a legally enforceable binding contract. One party may avoid a contract — for example, for unconscionable conduct by the other; one party may terminate the contract before performance is complete — for example, for breach; or the contract may be performed to the satisfaction of the parties.
It can be said that one of the fundamental aims of the law of contract is to provide a fair framework within which the parties are free to contract. Introduction Contract law is a legal agreement through which single or several persons are obliged to bind together towards single or several persons to perform certain task. It deals with understanding and enforcement of written agreement between two different parties. A contract exist when an offer is proposed to a party and is accepted. In order to create a binding agreement, there must be offer and acceptance.
Contract Law from Law and Economics Perspective Voluntary exchange is of the utmost importance in being able to transfer resources from less to more valuable uses and to the hands of those that value them the most. This process of exchange does not face many obstacles when the parties to a transaction can perform their obligations in a simultaneous manner. Cohen June 15, Fundamentals of a Contract The Fundamentals of a Contract is when a legal agreement is constructed that bonds a party of two or more individuals, corporations, etc.
In order for the to be considered legal in the court of law it must contain these elements; an offer, an acceptance, defined terms, capacity and legal consideration. It also begs one to apply legal principles in such a way as to determine the outcome of a legal dispute as well as see the dispute from the perspectives of both parties involved.
A contract may be defined as an agreement between two or more parties that is intended to be legally binding. According to Graw , every contract has a number of essential elements.
This is sometimes misleadingly expressed as a rule that "silence cannot amount to acceptance". They are an essential part of business. As a student of a business law class, I will discuss in this paper several aspects of contracts. This paper will give a definition of a contract and the essential elements necessary to form a valid contract. It will briefly discuss breach of contract and the difference between a material breach and a nonmaterial breach of contract.
A contract maybe written or oral, although an oral agreement can be difficult to prove in court. In order for a contract to exist it must include four elements, that being offer, acceptance, intention and consideration.
Consideration is something of value in a contract or agreement between two parties. Both parties must be providing something of value to the other party.
It is an act or promise to do or not to do something in return for value and the value given is enforceable. There is no all-encompassing federal law which regulates each states contract laws, hence creating variation and controversy between the different states laws. Besides, writing requirements and formalities is another important element of a contract. A written contract must be signed by all parties involved.
However, a contract may be oral. An oral contract can either be implied in facts or implied in law. In an implied in fact contract, the parties involved receive the benefit of the bargain. In relation to the elements of a contract, it is evident that there was a contract for the purchase of the automobile between Jim, Laura, and Stan. Firstly, there is an element of capacity and competency in the contract for the purchase of the automobile.
This is due to the fact that both parties are not minors and therefore have the legal capacity to enter into any contract Kronman, Furthermore, as natural persons with sound minds, Jim, Laura, and Stan are competent enough to enter into the contract for the purchase of the car. Thus, this element proves that there was a contract for the purchase of the car. Moreover, the element of consideration also exists between the parties in the contract for the purchase of the car.
For one, each party in the contract received something for value. This consideration was sufficient and also moved from the promisor to the promisee. In addition, there was a mutual consent between the parties that prove that a contract for the purchase of the automobile exists between Jim, Laura, and Stan since the buyers agreed to pay the down payment which was then accepted by the seller.
If a contract has been signed between two parties, then one party will be able to sue the other if it does not fulfill the contractual provisions. Competency or ability to get into a contract: The law does not give everyone the liberty to enter into a contract; rather certain specific qualifications are prescribed to achieve the competency to get into a contract.
To be legally competent to enter into contract one must be of the age of majority should not be minor , having sound mind and has not been disqualified by any law. Free consent: Free consent is an essential element of a valid contract.
In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Consequently, the exchange is a benefit to one party and a detriment to the other. The offer has three elements serious intent to bond an agreement together, logically definite term, and the communication to the offeree.
Some contracts spell out the benefits that that are derived by third-party beneficiaries or instill requirements on third-party obligors. The promotion entails bonus air miles. Remember: This is just a sample from a fellow student. The obligation to perform from the first night was a condition of the contract.
Where a statement made during the course of negotiations is classed as a representation rather than a term an action for misrepresentation may be available where the statement turns out to be untrue. 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, However, this distinction too has been somewhat blurred in recent times and it is now possible for a plaintiff to bring an action in both tort and contract on the same facts. Consequences of statutory illegality depend upon when the contract becomes illegal Consequences of statutory illegality depend upon when the contract becomes illegal. In fact, a void contract means a contract has ceased to exist and that there is no contract existing between the two parties. Terms implied by the courts Terms may be implied if the court concludes that the parties intended those terms to apply to the contract.
Whatever is the case, managers and others have to comprehend the process of contract law. Duress is held to have occurred where there has been actual or threatened violence either to the other contracting party directly or to their immediate family, near relatives or close associates. Secondly, duties arising from contract are owed to the parties to the contract or their assignees , whereas delictual obligations are owed to a large and indeterminate class of persons.
Carver is liable for breach of contract with Mr. Contracts which would violate the social or moral attitudes of the community and are void ab initio include: ' contracts to commit a crime, a tort or a fraud on a third party; ' contracts that are sexually immoral or which prejudice the status of marriage; ' contracts prejudicial to the administration of justice Contracts which would violate the social or moral attitudes of the community and are void ab initio include: ' contracts to the prejudice of public safety, or of good relations with other countries; ' contracts which tend to promote corruption in public life ' contracts to defraud the revenue; and ' Contracts that involve a breach of duty. 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. Though an offer may be revoked at any time, it cannot be brought to an end after acceptance to which the company had already made in writing.
In addition, this paper will also decide whether or not there was a contract for the purchase of the automobile and also identify the facts from this scenario which support the decision on whether or not a contract exists for the purchase of the automobile. Consequently, the auditor was not owed duty of care to shareholder because the statement was not including in investing purpose.
It is not necessary that all adhesion contracts are unconscionable contracts, since in some cases it is quite coincident for one party to have a superior bargaining advantage leaving no alternative for the other party.
Commercially based agreements will be seen as including a rebuttable intention to create a legally binding agreement. It is then necessary for the stronger party to show that the contract was not the result of any undue influence. Other than a real implied contract consists of firm obligations that arise from a mutual agreement and goal of promise, which is not expressed orally. Implied terms may override express terms in certain circumstances such as where they are implied by statute. The defendant was therefore liable under the contract. This is in contrast to criminal law which is invoked for the public purpose.