Legal Notes
What is Contract?
Contract is an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as contract. Since the law of contracts is at the heart of most business dealings.
There are two important elements in Agreeement of Contracts, i.e. 1) A proposal or an offer 2) An acceptance of that proposal or offer
Essential Elements of a Valid Contract:- a) Agreement: - A negotiated and usually legally enforceable understanding between two or more parties. Although a binding contract can result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.
b) Intention to create legal relationship: - One of the essential elements in the creation of a binding contract, this intention is implied by the fact that it is not expressly denied. Intention to bind the other party with the involved legal obligations.
c) Free and genuine contract:-Two parties must give their Free and genuine contract to the term of agreement. Such consent should not obtain one or more of following manners i.e. I. By coercion II. By undue influence III. By fraud IV. By misrepresentation V. By mistake
If the consent would be proved to have been obtained in one or more of the aforementioned manner, such contract automatically declared as voidable contract.
d) Lawful consideration:- Consideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other. In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance,
Contract is an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as contract. Since the law of contracts is at the heart of most business dealings.
There are two important elements in Agreeement of Contracts, i.e. 1) A proposal or an offer 2) An acceptance of that proposal or offer
Essential Elements of a Valid Contract:- a) Agreement: - A negotiated and usually legally enforceable understanding between two or more parties. Although a binding contract can result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.
b) Intention to create legal relationship: - One of the essential elements in the creation of a binding contract, this intention is implied by the fact that it is not expressly denied. Intention to bind the other party with the involved legal obligations.
c) Free and genuine contract:-Two parties must give their Free and genuine contract to the term of agreement. Such consent should not obtain one or more of following manners i.e. I. By coercion II. By undue influence III. By fraud IV. By misrepresentation V. By mistake
If the consent would be proved to have been obtained in one or more of the aforementioned manner, such contract automatically declared as voidable contract.
d) Lawful consideration:- Consideration is an essential element for the formation of a contract. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. In a bilateral contract—an agreement by which both parties exchange mutual promises—each promise is regarded as sufficient consideration for the other. In a unilateral contract, an agreement by which one party makes a promise in exchange for the other's performance,