The Importance of the Essential Elements Required for the Formation of a Valid Contract
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- Category: Science
- Date Submitted: 10/20/2015 09:06 AM
- Pages: 19
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Table of Contents
1.1 Explain the importance of the essential elements required for the formation of a valid contract 2
Agreement 2
Consideration 4
Intention to create legal relations 6
1.2 Discuss the impact of different types of contract 7
Unilateral contract 7
Bilateral contract 7
Written contract 7
Oral or verbal agreement 8
1.3 Analyse terms in contracts with reference to their meaning and effect 9
Conditions 10
Warranties 10
Innominate 10
Exclusion clause 10
Implied term 10
2.1 Apply the elements of contract in given business scenarios 11
Case 1 11
Case 2 11
2.2 Apply the law on terms in different contracts 13
Case 1 13
Case 2 13
2.3 Evaluate the effect of different terms in given contracts 14
Case 1 14
Case 2 14
Bibliography 15
1.1 Explain the importance of the essential elements required for the formation of a valid contract
Agreement
For a contract to exist, usually one party must have made an offer, and the other must have accepted it. The person making the offer is the OFFEROR and the person to whom the offer is made is the OFFEREE. (Contracts, 2010)
A contract begins with an OFFER. The offer is an expression of willingness to contract on certain terms. It allows the other party to accept the offer and provides the basis of the agreement.
Offer must follow these several rules:
* Intention to create legal relationship
An offer must be such that when accepted, it will create legal relationship among the parties.
* Certain and unambiguous terms
If the terms of the offer are vague, no contract can be entered into because it is not clear as to what exactly the parties intended to do.
* Different from a mere declaration of intention
Such statement or declaration merely indicates that an offer will be made or invited in the future.
* Different from an invitation to treat
In case of an invitation to treat, the person making an invitation invites others to make an offer to him. It is introduction to an...
1.1 Explain the importance of the essential elements required for the formation of a valid contract 2
Agreement 2
Consideration 4
Intention to create legal relations 6
1.2 Discuss the impact of different types of contract 7
Unilateral contract 7
Bilateral contract 7
Written contract 7
Oral or verbal agreement 8
1.3 Analyse terms in contracts with reference to their meaning and effect 9
Conditions 10
Warranties 10
Innominate 10
Exclusion clause 10
Implied term 10
2.1 Apply the elements of contract in given business scenarios 11
Case 1 11
Case 2 11
2.2 Apply the law on terms in different contracts 13
Case 1 13
Case 2 13
2.3 Evaluate the effect of different terms in given contracts 14
Case 1 14
Case 2 14
Bibliography 15
1.1 Explain the importance of the essential elements required for the formation of a valid contract
Agreement
For a contract to exist, usually one party must have made an offer, and the other must have accepted it. The person making the offer is the OFFEROR and the person to whom the offer is made is the OFFEREE. (Contracts, 2010)
A contract begins with an OFFER. The offer is an expression of willingness to contract on certain terms. It allows the other party to accept the offer and provides the basis of the agreement.
Offer must follow these several rules:
* Intention to create legal relationship
An offer must be such that when accepted, it will create legal relationship among the parties.
* Certain and unambiguous terms
If the terms of the offer are vague, no contract can be entered into because it is not clear as to what exactly the parties intended to do.
* Different from a mere declaration of intention
Such statement or declaration merely indicates that an offer will be made or invited in the future.
* Different from an invitation to treat
In case of an invitation to treat, the person making an invitation invites others to make an offer to him. It is introduction to an...