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
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
A Bilateral Mistake- is where both parties of the contract are in knowledge of the mistake in the agreement.
"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" (Mallor et al., 2015, p. 320)
An offer is an objective manifestation of a willingness by offeror to enter into an agreement. It must be communicated to the offeree.
Various elements must be present to prove that a valid contract exists between Sam and the chain store. These four elements required for a contract are the agreement, the consideration, contractual capacity, and a legal object. The first element is the agreement which starts with an offer between two parties known as the offeror and offeree. The offer has three elements serious intent to bond an agreement together, logically definite term, and the communication to the offeree. Once the offer has been appropriately given by the offeror to the offeree the process has started. Now the offeree can either accept or reject the offer, if the offer is accepted an contract is form. On the other hand if the offeree rejects the offer a contract may not
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,
Contract is defined as ‘an agreement enforceable by law’, which means an agreement that is legally binding two or more parties in a contract. Contract Act 1950 is governs by the legislation in Malaysia and it is different from English Law in terms of provisions (Lee & Detta, 2009).
A contract requires that the parties intend to enter into a legally binding agreement. That is, the parties entering into the contract must intend to create legal relations and must understand that the agreement can be enforced by law. The intention to create legal relations is presumed, so the contract doesn 't have to expressly state that you understand and intend legal consequences to follow. Stan insists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Stan is very persistent and insistent that Jim and Laura have contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car.
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.
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.
We shall also discuss what are the general rules when comes for the formation of a contract and what are the different solutions when comes to the breaching of a contract with example of some cases.
There are three main types of mistake: common mistake, mutual mistake, and unilateral mistake. Common mistake occurs when both parties make the same mistake. They are in agreement but their agreement is based on falsities. Mutual mistake occurs when both parties make a mistake but their mistakes are different. In this case, there is no meeting of the minds. Unilateral mistake is when only one party makes a
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.
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.
A contract is an expressed or implied agreement that legally binds the contracting parties into performing their contractual obligations. It has been defined in the section 2(h) of the Contract Act 1872 as, “An agreement enforceable by law is a contract.” A contract that is not made as a result of expression or implication of mutual consent of the contracting parties is not considered valid. An obligation is a commitment or a duty that is legally binding under a certain discipline. Obligations vary from discipline to discipline.