A contract is put in place to provide a legal link between each party. Therefore it is important to understand on how a contract is formed and what are the steps and requirements to make sure the contract stays legally enforceable. In order for a contract to exist, there are four key elements to it. An offer must firstly be made by the offerer, followed by the acceptance of the offer by the offeree. Considerations must also be done under seal and deed and there must be an intention to create legal intentions for the contract. All these terms must be fulfilled, as any terms left unfulfilled would deem the contract as non-legal enforceable. Besides these key elements, there are also certain factors which might affect the legal enforceability of a contract.
Firstly, I will discuss on the basic formation of a contract that consists of the offer, acceptance, consideration, as well as the intention to create legal intentions. Secondly, I will discuss whether in terms of the four key factors, are they sufficient enough to allow legal enforceability, Thirdly, I will touch on what are the other factors that we have to consider in order for a contract to be legally enforceable. Lastly, in conclusion I will then show why I agree with the statement.
The reason as to why Contract law exists is because it is there to make sure people keep their promises to one another. A contract is made up of a promise of one party to do a certain thing in exchange for a promise from the other party to do another thing. The law will enforce on them if either party breaks away from the promise, as promises are what contracts are all about.
Contract law is based on several Latin legal principles, the most important of which is consensus ad idem, which means a meeting of the minds between the parties. It also means a clear understanding, offering and acceptance of each person's contribution.... [continues]
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