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  • June 19, 2017
  • David Marks
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ESSENTIAL ELEMENTS OF CONTRACT

Introduction

This report will explain the significance of the elements required for establishment of a contract valid by law. We even tried to distinguish an invitation to treat from offer. There are various kinds of contracts like the oral contract, the written contract and the distance selling contract; we tried to emphasize upon these kinds of contract also in this report. Along with all these overview of contractual liability and tortuous liability will be given in this report. Further we tried to explain the different concept of law of tor like negligent liability and vicarious liability. Where on one hand negligent liability arises due to non performance of the duty of care towards others, on the other hand vicarious liability obliged a person even without the involvement in wrong because of the relation enjoyed with the person committing the wrong. The implication of all these concepts will be tried to explain through different situations.

TASK 1

Explain the importance of the essential elements required for the formation of a valid contract.

ESSENTIAL ELEMENTS OF CONTRACT

Offer and acceptance: At least there should be two parties involved to form a valid contract. It is because one party should make an offer to another party and therefore the offer made should be accepted by another party.

The offer should be differentiated from an invitation to treat. An offer is made in the form of a proposal for the formation of a contract, whereas an invitation to treat is a mere willingness to covenant and bargain.

Acceptance of an offer is made for only what has been the offer, without any variations made regarding the same.

Consideration: For the validation of a contract, there should be a valid consideration involved. Validation of consideration should be determined when the consideration has some legal value not only in terms of money rather involving the rights, benefit or interest.

Intention: For the validation of a contract the two parties involved should enjoy a legal relationship among them creating a legal obligation over the breach arising out of the terms and conditions mentioned in a contract for the performance of the contract.

Consent: In regard of establishment of a contract, the parties involved should give a valid consent for the contract. The consent should not be made to force of someone, not through unconscionability of a party, not by mistake, not through coercion, etc.

Legal capacity: For being a party to the contract, the person should attain the majority age and should not be barred by law to enter into a contract.

Illegal and void contracts: The contract made should not be a contract to the public at large (The Law Handbook, 2013).

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