Contains Basic Requirement Assignment Help
Every contract is required to be stated in a way that contains the basic requirements of formation of a contract. Such requirements are to be studied under the present assignment to determine the differences in different types of contract with the help of types of terms. The breach under contract as well as tort is required to be analysed in order to provide the distinguished nature of two liabilities. The liability under tort is of different types such as the negligence and vicarious arising from the duty of care that has to be explained herein under.
- Whereby the contract is being entered into by the parties the intent to enter into the contract should be clear and common between the parties. The contract should be entered into by the parties having the same purpose and intent to form the same. The intent of the contract is an important element because it helps in determining the enforceability of the contract under the law. It is assumed that the contract of commercial nature are intended to be legally bound as the same are entered into by the parties for no other purpose but the contract. However, the contract of social nature is presumed to be entered into by the parties for the purpose of mutual benefit that should not be legally bound. Therefore, if the social contracts are to be bound by such laws the same shall be mentioned under the contract. (Meyer, 2010)
- The contracts so entered into by the parties shall involve the transaction of a consideration. This is so because the involvement of consideration ensures that the contract is valid in formation. The consideration refers to the amount so exchanged between the parties for the performance of the contract. The parties so suffering from the loss are restored in value from the transaction so undertaken in a contract thereby making it a valid under the law. If the consideration is missing from a contract it is said that the relationship between the parties is merely a promise. Such considerations shall be of certain types such as not of past and sufficient. The consideration shall not be deriving from the existing duty of social or contractual nature and be quantified. (Nel, 2004)
- The parties to the contract should be a valid party in terms of capacity of the same. The capacity of the parties should be determined based on the capability to understand and interpret the contract as presented. The capacity of the parties is drawn based on the legal age, mental ability, financial status. If the parties are not of the mental ability, minor or bankrupt then such parties are considered ineligible to enter into the contract and the contracts so entered by them would be void. It is also important to know that the parties were of capacity at the time the contract was entered into. The capacity of the parties is excused if either of the party is a minor when agreed by the contracting party. The contracts entered into by minors for the purpose of necessities would also be considered valid.
- The contracts once entered into, may or may not be completely carried out by the parties. The contracts if not carried out by the parties would be termed as breached. Thereby, the breach so committed may adversely affect the damaged party’s position under a contract. The damages so occurred under the contract should be claimed fro from the damaging party. The damages may only be recovered from the party to the contract. Thereby, such a relationship may be termed as a privity to contract. This would imply that no third party may be able to claim for the damages so committed by the damaging party.
Certain terms are clearly determined under the contract and are present in writing. Such terms are known as the express terms. Express terms are said to be clear in meaning and common in intent for the parties to the contract. These terms are easily understood and certain in purpose. Thereby, the meaning and intent is easily established from such terms.
- Collins, H. (2008). Standard contract terms in Europe. Alphen Aan Den Rijn: Kluwer Law International.
- Cooke, P. (2007). Law of tort. Harlow: Longman.
- Giliker, P. (2010). Vicarious liability in tort. Cambridge, UK: Cambridge University Press.
- Meyer, L. (2010). Non-performance and remedies under international contract law principles and Indian contract law. Frankfurt am Main: P. Lang.
- Nel, J. (2004). The theoretical basis for contractual liability. Bathurst, N.S.W.: Faculty of Commerce, Charles Sturt University.
- Pratt, S. (2000). Duty of care. East Roseville, N.S.W.: Simon & Schuster.
- Richards, P. (2006). Law of contract. Harlow, England: Pearson Longman.
- Vettori, S. (2007). The employment contract and the changed world of work. Burlington, VT: Ashgate Pub.