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ELEMENTS OF A VALID CONTRACT

Introduction

ELEMENTS OF A VALID CONTRACTThis report enumerates the essentials of contract so as to make the contract lawfully valid. In order to build the contract lawfully valid, it is vital that all the essentials of a legal contract must be composed. Similarly, in negligence and vicarious liability, there are many essentials that are required to be constituted so as to bring a claim under negligence and vicarious liability respectively. There are also various defenses available to the defendant to defend themselves from the liabilities arising in negligence and vicarious liability. The defenses are violent non fit injurious and contributory negligence that has been well explained in the end of the report.

TASK 1

1.1 Explain briefly the essentials of a valid contract

ELEMENTS OF A VALID CONTRACT.

Offer:  It is a sign either made by words or made by conduct showing the keenness to do or avoid doing something with the purpose of making a lawful compulsion on the contracting parties by the definite terms illustrated in the agreement (The City Law School, 2014).

Acceptance: An acceptance is an incompetent and unequivocal assent to each and every one of the terms and conditions of the offer. The contract emerges after acceptance of the offer is made (Insite Law Magazine, 2014).

Consideration: A consideration is a benefit, right, interest or some profit accrued on one party and at the same time is a forbearance or detriment or loss suffered by the another party (Currie v Misa, 1875).

ELEMENTS OF A VALID CONTRACT

Intention to make lawful relationship: Intention to make lawful relationship is the for the most part significant building block of contract which means that the contracting the parties have the legal intention to make the contract binding them legally. A contract can be invalidated if the contracting parties do not intend to bind themselves legally. In domestic or social contracts and in commercial contracts the court has prepared distinct presumptions respectively. In domestic or social contracts the court assume that the contracting party did not have the legal intention while making the contract (Balfour v Balfour, 1919), whereas in commercial contracts the court generally assume that the contracting parties had the intention to make a lawfully compulsory contract (Esso Petroleum v Commissioners of Customs & Excise, 1976). These presumptions can be rebutted if evidence to the contrary is shown.

Legal Capacity: The lawful legitimacy of an agreement can be well when the contracting  parties with the aim to enter a contract has the ability and compatibility for entering, capacity could be defined as the age of the person to attain the age of majority, and also the mental capability to contract (In Brief, 2014).

Privity of contract: The privity of contract is that contract that does not impose any obligation on the third party. The third party are those parties who are not parties to contract rather they are outsiders and they do not have any right to enforce the breach of contract (Business Dictionary.com, 2014).

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