The Prerequisites for a Legally Binding Contract ● Cleary Explain the Pre Requisites to a Legally Binding Contract. ● Describe the Main Difference Between a Condition and Warranty. ● Define an Exclusion Clause and the Importance of It.
1.A contract to be legally valid,should meet 3 essential elements,which would be examined by a court as evidence of any contract.These main pre-requisites are ,
● The agreement must have an offer and an acceptence: a contract is a bilateral agreement between two or more parties. So when the offeree accepts the offer for a consideration made by the offeror, it becomes a contract. eg:-Carlill v Carbolic Smoke Ball Company [1893] Eg:James promises to sell his land to Jane for £10000.And Jane accepts to purchase it for that amount.Here James is the offeror ,where as Jane is the offeree or the acceptor.So this would be legally valid only if Jane accepts the offer.
● The intention behind a contract must be to create legal relations:When the parties involved do not have such intention,then those contracts are void/not valid. eg : Balfour v. Balfour (1919)
● Consideration:A contract to be legally valid,it should have a consideration defined by the parties to a contract. Eg:Peter wanted to attend for an important meeting and Jane promised him to drop him to the station at the right time;but Jane failed to keep her promise and ultimately peter missed his train and the meeting.Here Peter cannot sue Jane for the lost benefits which would have gained from the meeting,as this promise is informal and without consideration. A consideration is the value/price that causes a party to enter into a contract. eg:Currie v Misa (1875)
Besides the above mentioned essential elements ,there are some additional requirements as well.These are;
● Capacity to contract:A contract to be valid,both parties of a contract must have
● The agreement must have an offer and an acceptence: a contract is a bilateral agreement between two or more parties. So when the offeree accepts the offer for a consideration made by the offeror, it becomes a contract. eg:-Carlill v Carbolic Smoke Ball Company [1893] Eg:James promises to sell his land to Jane for £10000.And Jane accepts to purchase it for that amount.Here James is the offeror ,where as Jane is the offeree or the acceptor.So this would be legally valid only if Jane accepts the offer.
● The intention behind a contract must be to create legal relations:When the parties involved do not have such intention,then those contracts are void/not valid. eg : Balfour v. Balfour (1919)
● Consideration:A contract to be legally valid,it should have a consideration defined by the parties to a contract. Eg:Peter wanted to attend for an important meeting and Jane promised him to drop him to the station at the right time;but Jane failed to keep her promise and ultimately peter missed his train and the meeting.Here Peter cannot sue Jane for the lost benefits which would have gained from the meeting,as this promise is informal and without consideration. A consideration is the value/price that causes a party to enter into a contract. eg:Currie v Misa (1875)
Besides the above mentioned essential elements ,there are some additional requirements as well.These are;
● Capacity to contract:A contract to be valid,both parties of a contract must have