Contract Law Worksheet

Satisfactory Essays
Contract law – contract formation

Figure 1: Elements required for a contract to be recognised by law
Using Figure 1 above, and your knowledge of the elements required for contract formation, consider whether a contract recognised by law has been made in each of the scenarios below.
Scenario
IS THERE A contract?
James is selling his car for $5000. Lucy comes to look at it, and says that she loves it, but that she only has $4800 to spend. James says he will accept $4800, as long as Lucy can pay within 3 days. Lucy says that she can, and says she will come to James’ house to pick up the keys and drop off the $4800 in 3 days time.

Adam’s neighbor Julie has told him that she plans to erect a large, brick fence along the boundary of their property. Adam thinks this is a terrible idea. Adam offers Julie $500 if she agrees not to build the fence. Julie takes the $500, and says she will not build the fence.

Paul and Susie are chatting while Paul is playing with his new iPad. Susie is quite jealous, and offers to buy the iPad off Paul for $200. Paul laughs and says that the iPad is worth at least $500. Julie offers him $500 for the iPad, but Paul says he is not interested in selling it.

Mark and his Dad agree that if Mark spends at least 2 hours each night studying in preparation for his upcoming exams, Mark’s Dad will buy him an iPod once his exams are completed.

Jessie offered her friend Patrick $50 to paint her bedroom. Patrick said he would do it, but only if Jessie paid him $100. Jessie said she would think about it.

Contract law – contract formation

Figure 2: Elements required for a contract to be recognised by law
Using Figure 1 above, and your knowledge of the elements required for contract formation, consider whether a contract recognised by law has been made in each of the scenarios below.
Scenario
IS THERE A contract?
James is selling his car for $5000. Lucy comes to look at it, and says that she loves it, but that she only has

You May Also Find These Documents Helpful

  • Better Essays

    Contract Law

    • 2681 Words
    • 11 Pages

    Business Law Assignment; Mistake in contract law, is a factual misunderstanding that may lead to a failure of a meeting of the minds. Unilateral mistake is mean that is only one party is mistaken, but the other party knows, or ought reasonably to be aware of the mistake. Contract may be void or voidable. Void is a contract that is no legal effect. While, voidable is an agreement that may be affirmed or rejected at the option of one of the party. The reason why Lord Denning took the view that these…

    • 2681 Words
    • 11 Pages
    Better Essays
  • Better Essays

    Contract of Laws

    • 6456 Words
    • 26 Pages

    INTRODUCTION The law of contract is the collection of legal rules which govern contracts. These rules, in turn, are part of the law of obligations, a subdivision of the law of property which is traditionally regarded as part of private law. Private law governs the persons (legal subject) in their personal or private capacity before the law in relation to other legal subjects. In other word, private law can be defined as balance and protect legitimate individual interests. Traditionally private law, being…

    • 6456 Words
    • 26 Pages
    Better Essays
  • Good Essays

    Contract Law

    • 3119 Words
    • 13 Pages

    ------------------------------------------------- HND BUSINESS CONTRACT LAW | Aspects of Contract and Negligence | | | HND BUSINESS - CONTRACT LAW Case 1 1.1 Introduction A contract is a legally binding agreement between two or more people in writing or in words that includes a valid offer and acceptance. The essential elements of a binding contract are: 1. Offer and Acceptance 2. Consideration given by both sides 3. The intention to create legal relationship 4. Privity…

    • 3119 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    Contract Law

    • 935 Words
    • 4 Pages

    Contract A contract is a promise between two or more persons involving the exchange of some good or service. Some of the basic elements of a contract include: an offer and an acceptance; "capacity," or being of legal age and sound competence; "mutual assent," or agreement on the terms of a contract; and "consideration," or compensation for goods or services rendered. The element that distinguishes a contract from an informal agreements is that it is legally binding:the law provides…

    • 935 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Law of Contract

    • 2143 Words
    • 9 Pages

    1. Introduction – What is a Contract? 1.1 Definitions Not all agreements will be contract enforceable in law - social arrangements, for example, or contracts which offend against public decency and public policy and those which involve criminal activity. ‘A contract is an agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties.' Treitel…

    • 2143 Words
    • 9 Pages
    Good Essays
  • Best Essays

    Contract Law

    • 2777 Words
    • 12 Pages

    Introduction For parties to be bound by an agreement, it must first be determined if a prima facie valid and enforceable contract exists. A contract can be defined as an agreement containing promises made between two or more parties with the intention of creating certain legal rights and obligations and enforceable in a court of law [1]. For a legally binding contract to exist the following elements must be satisfied: 1. An offer must exist 2. The offer must be accepted 3…

    • 2777 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Contract Law

    • 1349 Words
    • 6 Pages

    In Business, contracts can be considered as the heart of dealings and have to be taken with utter most consideration of the acceptance, however in order to understand in depth a binding agreement, we must first discuss, what determines a contract or binding agreement. These can be defined as “an agreement which the law will enforce” as well as a “promise or set of promises which the court will enforce”. To facilitate a binding agreement, an acceptance must occur and must be absolutely unconditional…

    • 1349 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Contract Law

    • 2568 Words
    • 11 Pages

    Different approach taken by the Court of Appeal in Williams v Roffey was it fair or not? It is commonly accepted within the English Contract Law that the models of contractual fairness must exist in contractual disputes. Essential to these models is the doctrine of consideration and the principles that comes under the doctrine of consideration such as laws derived from both Williams v Roffey (1990) and Stilk v Myrick (1809). Starting with the development of the doctrine of consideration and…

    • 2568 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    law of contract

    • 3836 Words
    • 16 Pages

    In Malaysia, our contract law is basically governed and enforced by the Contract Act 1950. The remedy of specific performance presupposes the existence of a valid contract between the parties to the controversy. The terms of the contract must be definite and certain. This is significant because equity cannot be expected to enforce either an invalid contract or one that is so vague in its terms that equity cannot determine exactly what it must order each party to perform. It would be unjust for a…

    • 3836 Words
    • 16 Pages
    Good Essays
  • Powerful Essays

    Contract Law

    • 1329 Words
    • 6 Pages

    PART I. Introduction England's contract law is consisted of several laws and they can not be written or at least explained in a student's assignment, which is consisted of 1000 words. Despite that I will try to outline the main points of the contact law and explain briefly what each means. On the second point I will explain the little difference between the English contact law with the equivalent contract law of my home country which is Cyprus. I wrote "little differences " because, Cyprus is following…

    • 1329 Words
    • 6 Pages
    Powerful Essays