"A valid contract, in essence, is the agreement between its parties".
Discuss this statement and, using both case law and legal principles, comment on the essential elements of a valid contract and the importance of each.
To a certain extent this statement is true but it is only one element of a valid contract to explain please find following all elements and conditions within a valid contract.
Is to enter into a relationship or agreement between two or more parties that create in each party a duty to do or to refrain from doing something. Normally this means one party making an offer and the other accepting it. Then if one of the parties or persons fails to keep his or her promises, the other is entitled to legal recourse against that person or parties.
Unilateral and Bilateral Contracts
There are 2 forms of contract either Unilateral or Bilateral. The most common is bilateral this is the exchange of mutual, joint promises between persons that entails the performance of an act, or refraining from the performance of an act, with regard to each party. It is also called a two-sided contract because of the two promises that form it.
Unilateral contracts involve a promise made by one party only. This normally involves the offeror promising to do a certain thing if the offeree performs an act. This is a one sided contract because only the offeror, who makes the promise, with be legally bound. The offeree can perform or refrain from performing the act but cannot be sued as he / she did not make any promises.
An example of an unilateral contract would be a agreement whereby D promises 50 pounds to P if P finds and return's D's lost cat.
What is a valid Contract?
This is a contract that complies with all the essentials of a contract and is binding and enforceable on all parties to it. It is also a myth that all contracts must be in writing. Although it is wiser to have the term written to save future misinterpretation and errors it is not necessary. A contract can be created:
豋r by an action
Of course there are certain contracts, which must be made by writing or by deed. For example contracts which must be written and signed by both parties include hire purchase agreements or agreements to buy land. Contracts, which must be made by deed, are leases over 3 years or all transfers of land.
Terms of the contract
Contract can contain expressed terms or implied terms. Expressed terms are ones, which have been specifically agreed by the parties either written or verbally at the time of its formation.
Implied terms are in some circumstances read into contracts by the court. These are terms not specifically agreed by the parties but are assumed by both. They can be divided into 4 categories:
豂mplied in Law
豂mplied in Custom
豂mplied in Fact
豂mplied in Trade usage
For example if you were to sell goods it goes without saying that the goods should not be faulty or dangerous and that they will conform to the description.
An expressed term can override the implied terms?
There are a number of elements necessary for a contract to be valid:
I have taken each aspect and explained the importance of each:
Offer (which can sometimes be joint with acceptance)
A person making an offer is called the offeror and the person receiving the offer is called the offeree. It is sometimes difficult to differentiate between an offer, which is a clear indication that the offeror intends to be bound by the term if the offeree accepts and an invitation to treat, which sometimes looks like a definite offer, is in fact a part of the negotiations, which go on before an offer is made and is not intended to be legally binding.
There are a number of issues, which can stop the formation of a contract:
1.Mutual mistake or unclear with respect to material terms.
2.Where the offer is revoked or has expired.
3.Lapse of time.
4.Death or incapacity of...
Please join StudyMode to read the full document