...Valid Contract 1. Offer and Acceptance. In order to create a valid contract, there must be a 'lawful offer' by one party and 'lawful acceptance' of the same by the other party. 2. Intention to Create Legal Relationship. In case, there is no such intention on the part of parties, there is no contract. Agreements of social or domestic nature do not contemplate legal relations. 3. Lawful Consideration:Consideration has been defined in various ways. According to Blackstone,"Consideration is recompense given by the party contracting to another." In other words of Pollock, "Consideration is the price for which the promise of the another is brought."consideration is known as quid pro-quo or something in return. 4. Capacity of parties.The parties to an agreement must be competent t contract. If either of the parties does not have the capacity to contract, the contract is not valid.According the following persons are incompetent to contract. 5.Free Consent.'Consent' means the parties must have agreed upon the same thing in the same sense. (1) Coercion, (2) Undue influence (3) Fraud (4) Mis-representation (5) Mistake. An agreement should be made by the free consent of the parties. 6.Lawful Object .The object of an agreement must be valid. Object has nothing to do with consideration. It means the purpose or design of the contract. 7.Possibility of Performance. If the act is impossible in itself, physically or legally, if cannot be enforced at law. ...
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...Essentials of a valid contract. A contract is an agreement that can be enforceable by law. An agreement is an offer and its acceptance. An agreement which can be enforceable by law must have some essential elements. According to the constitution,All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. A contract must have the following elements. 1. Intention to create legal relationship. 2. Lawful object 3. Agreement not expressly declared void 4. Proper offer and it s acceptance 5. Free Consent 6. Capacity of parties to contract 7. Certainty of meaning. 8. Possibility of performance. 9. Lawful consideration 10. Legal formalities Intention to create legal relationship: The parties entering into a contract must have an intention to create a legal relationship. If there is no intention to create a legal relationship, that agreement cannot be treated as a valid contract. Generally there is no intention to create a legal relationship in social and domestic agreements. Invitation for lunch does not create a legal relationship. Certain agreements and obligation between father and daughter, mother and son and husband and wife does not create a legal relationship. An agreement wherein it is clearly mentioned that "This agreement is not intended to create formal or legal agreement and shall...
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...Essential Elements for Valid Contracts By: M.H.M.Rishardh MBA, BBA (Hons), FCMI (UK), MCIM (UK), Member of AMA (USA). MSLIM, MIM (SL) BCAS Qatar Learning Outcome: On successful completion of this topic you must be able to * Understand the essential elements of a valid contract in Business Context Contracts that meet all legal requirements are valid and enforceable, which means that either party can hold the other party responsible for his or her agreement. 1. Offer and Acceptance To have a valid contract, there must be a meeting of the minds (mutual assent), nominally evidenced by an offer and acceptance. An offer is made by an offeror and expresses that person's willingness to enter into a particular agreement. The offeree is the person to whom the offer is made. When the offer is accepted by the offeree, a contract is formed. Unless the offer specifies a particular period of time for acceptance, it is considered to be held open for acceptance for a reasonable time. A newspaper on online advertisement usually is not regarded as an offer but merely an invitation to negotiate. If an offer states a time for acceptance but fails to indicate "time is of the essence," the courts could allow acceptance after the period for acceptance expires. If “time is of the essence” is stated in the offer, acceptance must generally occur within the period specified or the offer is canceled automatically. If the offer fails to specify the form for acceptance (letter, telephone...
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...the law of contract, with a particular emphasis on the formation and operation of business contracts. You are encouraged to explore the content of these agreements and then develop skills relating to the practical application of business contracts, including offer, acceptance, intention, consideration and capacity. As a newly appointed human resources officer for an organisation called SimoSito (a software development company), your line manager has asked you to prepare a report with supportive examples of contacts for the organisation covering different types of contracts that the organisation can use or adopt. You will produce an individual written report for this assignment. The report should be approximately 2000 words and presented in formal report style. Assessment 1: ELEMENTS OF A VALID CONTRACT IN A BUSINESS CONTEXT Assessment Period: 6 weeks Learning Outcome: LO1 Understand the essential elements of a valid contract in a business context Assessment Criteria 1.1 explain the importance of the essential elements required for the formation of a valid contract 1.2 discuss the impact of different types of contract 1.3 analyse terms in contracts with reference to their meaning and effect TASK BRIEF Task 1: This task addresses LO1- 1.1/1.2/1.3 Produce a report that can be used to explore the types of business contracts, their terms, their meaning, their effects, and their impacts on a business. Support your report with examples of such contracts. There...
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...Audi R8, worth RM 900,000. The car has now been delivered but she is unable to pay for it. Discuss. First of all, the Law of Contract has been defined as an agreement which is legally binding between the both of parties. A contract simply means an agreement between the parties however the agreement has some important element within as it alone does not stand to have a binding contract. In a contract, there should have all the elements as proposed which will be offer, acceptance of offer, consideration, intentions to create legal relations, capacity, consent, legality and possibility of performance. In this particular situation, the element of capacity is lacking in this contract. Capacity to a contract defines us that parties in a contract must have the capacity to make a contract. In a simpler way, capacity is referred as legal ability to enter into a contract and the law generally states that everyone has the capacity to a contract except for certain circumstances which will be discussed in the following paragraph. Phing is 17 and underage, which makes her legally ‘incapable of capacity’ due to her minor status, and therefore any contracts made by Phing would be void ab initio except for certain exceptions, such as contracts for necessaries, scholarship contracts and insurance contracts. Section 11 of the Contracts Act 1950 is about contracts entered into by those who have no capacity. This section states that a person must satisfy the age of majority according to the...
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...WITHDRAW OFFER -ESP APR 7TH APR 6TH ESP ------ ACCEPTANCE - TGL APR 8TH Description of Diagram… APR 1ST TGL offer to sell furniture to ESP for £5000, of which the letter contained a term which was to notify TGL of acceptance within 7days. On APR 5TH sell products to another company, later that day they send a letter revoking the original offer, the letter was received on the APR 7TH . Therefore the offer is open until the 7th. On APR 6TH ESP post a letter accepting the original offer, which was received on the APR 8TH. TGL state that there is no agreement to sell but ESP threatens to sue, due to breach of contract. ATG win this case due to the term they put in, demonstrated by the astarix. If the general rule is applied then the offer is accepted on the 6th however the general rule won’t apply and the acceptance is complete on the 8th, the offer too late, and the contract is ‘dead’ Scenario 2 ATG-- Jim Special offer £2000 This is the offer This is the offer Jim -go away and think about it ---ATG ATG-Jim offer to sell for £2000 This is a counter offer This is a counter offer Jim -ATG emails back saying yeah for £1950 Description of Diagram … ATG offer to sell the product as a reduced price of £2000, Jim goes away and thinks about the deal. ATG then send an email to Jim saying they will sell the product to him for £2000, Jim writes back saying yes, if it is £1950. Jim attempts to accept the original offer, he is responding to an invitation to treat, and...
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...This is me. My name is Frank. I’m 19 year old and I’m a freshman of the university of Sunderland. I’d like to tell you somethings about me. I was born and grew up in a nuclear family in Quangnam city. There are 5 members in my family: my parents, my siblings and me. My father is 53 and he is a businessman. He is intelligent, hard-working and creative. He has set a good example for us to follow. My mother is also a businessman and she is 49. She has worked so hard to support my family. My brother and my sister are also working at a company in Danang. Honestly, my mother is a person who I love the most. She is really general and understand me. She always loves and takes good care of me. I really love her and my family. I studied at primary, secondary and high school nearly my hometown. As the almost students, I experienced a lot of compulsory subject like math, chemical, physical or English. When I studied at high school, I was really good at math so I usually got a high point in this subject. Honestly, in contrast, English was not my favourite subject. I hated it a lot of. Students in Vietnam learn English since secondary school. However, they are almost taught about grammar. It is very difficult. I couldn’t heard and speak anything. But everything has changed, since I studied at University of sunderland, my English skill has improved a lot of. I’ve studied with teacher who very good at English. We’ve been talking to English every time in class. Therefore, now I can speak and...
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...formation of a valid contract in the uk?Yahoo! Answers: Business & Finance. Four Essential Elements of a Contract www.smallbusiness.wa.gov.au/four-essential-ele... Traducerea acestei pagini An agreement must contain four essential ingredients to be regarded as a contract. ... For example: A quotation by sub-contractor to the main contractor and an offer ... Usually the consideration is the payment of money but it need not be; it can ... Elements of a Contract - Legal Dictionary - The Free Dictionary legal-dictionary.thefreedictionary.com/Element... Traducerea acestei pagini The courts must enforce a valid contract as it is made, unless there are grounds ... No legal benefit or detriment to any party was required, as the seal was a symbol ... consideration (see discussion below) for the promise made by the other. ... Ratification of a contract entails the same elements as formation of a new contract. main elements constituting a vaild contract - UK Essays www.ukessays.com › Essays › Law Traducerea acestei pagini For a valid contract, the basic elements that need to exist are: .... Legality, even where all the requirements of a valid contract discussed above the present, ... Contract - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Contract Traducerea acestei pagini Contract formation ... The elements of a contract are "offer" and "acceptance" by "competent ... In common law jurisdictions such as the United Kingdom and the United .... If the contract is not...
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...The Dispute between Mr. Richard and Chester’s Fish House Michael Piper In the contract dispute between Mr. Richard and the Chester’s Fish House restaurant, I choose to defend Mr. Richard. The waitress from Chester’s Fish House represents the restaurant. Her actions and remarks are in representation of the restaurant. Nowhere in the menu does it state that the Chester’s Fish Houses secret recipe is one hundred dollars. Nor was there a valid contract to allow for this charge, for the Chester’s Fish Houses secret recipe. All though, yes Mr. Richard did put a lot of pressure on to the waitress to give him the recipe, there was no verbal or written agreement made on the price for the recipe. There was nothing signed or said to Mr. Richard that stated the waitress was going to give him the recipe in exchange for one hundred dollars. To be a valid contract there must be four elements to a contract. These elements have to be in the contract to make the contract valid. Consideration, capacity, legality and offer or agreements are the four elements. In this situation there was only one of the four elements present. No where during their conversation was there consideration, legality nor was there acceptance or agreement to any type or form of a contract. For a contract to be valid there must be all four elements, in this case there is only one element involved in Mr. Richard’s conversation between himself and the waitress. At no point did Mr. Richard agree verbally or written...
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...is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance. Rule For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance is come after the offer has lapsed, the acceptance will not be valid. Application In this case, Chan offers to sell his car to David and David asked for some time to think about it. It can be noticed here that David gets back to Chan after long time thinking, which caused the offer lapse. Moreover, there is no binding options about specific period is stipulated to keep the offer open for offeree. The acceptance is not valid because the offer has been terminated due to the lapse of time. Conclusion There is no legally binding contract which has been formed between Chan and David. Case 2 Issue This problem indicates the issue about breach of contract. However, breach of contract only occurs when a legal contract has been formed. Therefore, a second issue is also addressed, whether a contract is valid. In terms...
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... administrative law, equity etc. In business world, we use different kinds of law & law of contracts is one of the most widely used business law which is basically used to understand future business related The Aspects of Contracts & Negligence for Businessissues in more predictable manner by people engage in contracts. Contract is basically a promise that gives the official commitment that the law will be enforced.Judicial activism, which creates law to be less predictable & more flexible, & judicial restraint, which makes law more predictable & less flexible, is two important issues closely related to contracts that need to be defined properly. Task 1: P1- The essential element of valid contracts in a business context: A contract, to be valid in a business context, must have some essential elements which can be basically classified in four major categories- ð Agreement- In every contract, there must be an agreement between two parties where one party needs to make any kind of valid offer & the other party needs to accept the offer made. ð Consideration- To be valid, every contracts must have some consideration on the basis of which they engage in the contract. There must be exchange of something. The subject matter of the contract may vary from contract to contract. ð Intention to Create Legal Relationship- The subject matter & everything related to the contract must be legal & there should...
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...elements required for the formation of a valid contract 9 1b. Analyse the scenario from the perspective of the law of contract. Apply the rules of offer and acceptance in a given scenario, also considering any impact of new technology 11 1c. Assess the importance of the rules of intention and consideration of the parties to the agreement 12 1d. Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement 14 2a. Analyse specific contract terms with reference to their importance and impact if these terms are broken 16 2b. Apply and analyze the law on standard form contracts 17 References 19 1a. Explain the different types of business agreement and the importance of the key elements required for the formation of a valid contract To implement the business activities with others, an person and even an organization needs make the legal contracts. The contract is considered as a versatile legal tool which guarantees legal enforcement of its terms. There are four popular types of business agreements such as sales agreements, employment agreements, independent contractor agreements and confidentiality agreements (1). * Sales agreements: this is a type of business contract between merchants and consumers. It is considered as a binding contract which binds the related parties if they sign the contract. The parties will be responsible for implement follow the terms of contract. The party of merchants usually has...
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...MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPOR INDIVIDUAL ASSIGNMENT Identify the essential elements required for there to be a valid contract Course : Diploma in Business Administration (International Business-DBID2 1501A) Module : Introduction to Business Law Name : FIN : Lecture : M. Lukshumayeh Due date: 18th June 2015 Table of Contents: 0 Introduction.......................................................................................1 1.1 what is a contract ？...................................................................1 1.2 The difference between an agreement and a contract ................1 1.3 The elements of a valid contract..........................................2 2.1 Offer...................................................................................................2 2.1.1 The definition of an offer .......................................................2 2.1.2 Two types of offer.................................................................2 2.1.3 Rules relating to offer ..........................................................3 2.1.4 An offer distinguished from an "invitation to treat".............3 2.2 Acceptance.......................................................................................3 2.2.1 The concept of acceptance ...................................................3 2.2.2 Rules relating to the acceptance...
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...Betty v. Art Issue: Was there a valid contract between Betty and Art? Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer Issue: Whether there was a valid offer between Betty and Art? Under the restatement §24, an offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his/her assent to that bargain is invited and will conclude it. In determining whether there is a valid offer, courts apply objective test which applies the reasonable person standard. Betty asked Art “on what terms he would build a barn on her property”, which created a manifestation of willingness to enter into a bargain with Art. The facts also show that Art responded what was needed to build a barn , “$100 per square foot, and Betty agreed with the terms "OK, if you guarantee January 1, 2005 completion”. Those exchange of statements provides a clear manifestation of willingness to enter into a bargain, where her assent to that bargain is invited and will conclude it. Art can argue that the exchange was more of an informational exchange of words and an invitation to enter into an agreement instead of an actual offer. When he stated that he had never built a bar for hire and continued to discuss what he would charge Betty, one could argue that the figures being discussed were all hypothetical. To Art’s defense, he stated that he has never build a bar for hire, which...
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...Contracts 613 MIDTERM EXAMINATION Contracts 613 Issue: Valid Contract Betty v. Art Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never built a barn for hire, he would charge $100 per square foot about $10 more than expected cost was intent to be bound by contractual agreement. When Art told Betty that he could build a 50 x 50 barn Betty said, "OK, if you guarantee January 1, 2005 completion” by her own words that she wanted to be bound by contractual agreement, Art agreed to the contract. Hence, it would be deemed that this present outward manifestation, because in the parties own words indicates their intent to be bound by contractual agreement for the build of Betty barn. Art will counter that their agreement was nothing more than a preliminary negotiations because the price increase there was a new agreement Betty’s initial inquiry was for $100 per square due to the increase in lumber he had to increase the price by $30 per square feet. Further, he had contracted to sale his farm and would not be able to build the barn. However, since one barn would build (quantity), 50’ by 50’ (size), to be ...
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