Legality Of Contract

Introduction:

A contract can be defined as an agreement creating obligations that are enforceable by law. It is a written or orally expressed agreement between two or more parties to perform a service, provide a product or commit to an act and is enforceable by law. There are several types of contracts, and each has specific terms and conditions. The basic elements are mutual assent, consideration, capacity, and legality.

To understand the rationale of a valid contract, it will be of high impetus if little can be said about its historical antecedents. The principle of contract can be traced back to early nineteen century. Before then, contract hardly exists as a separate branch of law. Activities of the modern day world have made it an important

Commercial agreements. Where an offer is extremely vague or clearly not intended to be taken seriously, the law will not give its acceptance contractual effects. Weeks v Tybald (1604) it was held that the D’s proposal to give ₤100 to suitable man who would marry his daughter as a mere puffs & not intended to be taken seriously. However D’s argument that their advertisement was a mere puff was rebuffed by the court in Carlill v Carbolic Smoke Ball Co

The capacity to enter into a binding contract is considered based on the parties’ age and mental ability. In common law, there are 3 categories of people whose power to make contract are limited by law. They are;

1. The minors: different laws have been put in place to define who a minor really is. The Family Law Reform Act 1969 later reduces the age from 21 to 18 years. Contract binding on minors are contract for the supply of necessaries. Minor contracts are divided into valid and enforceable contract at in Chapple v Cooper 1844 it was held that the contract was valid because the services rendered by the undertakers are for her benefit, voidable contract – not binding on minor but on the other party Corpe v Overton 1883 and unenforceable contracts.

2. People suffering of mental disorders or drunkenness which prevented them from understanding the terms of a contract will not bind by the contract but if otherwise, they will. Example is seen in Hart v O’Cornnor