Explain The Essential Elements Of A contract
This report is dedicated to state the elements of a valid contract and their vital character from business point of view. Later new breed of contract that is contract by parties without being physically present before each other. Further again the vitals of contract are dealt with by given situations. Moreover, the principles of negligence, tort are focused with instances. Lastly, the concept of vicarious liability is discussed with situations. The report is dedicated to allow the readers to understand easily the concepts dealt with.
Explain the essential elements of a contract.
Should a contract have all those elements to be legally enforceable? What will happen if one of the elements was missing in an otherwise valid contract?
Law of contracts pave way for a stable business where parties allow themselves to be bound by the conditions framed by them. However, this livergae is subject to principles of law and for the same certain essentials are needed.
- Offer and acceptance- An offer is the inception of a contract depicting the willingness of one person i.e. offeror. An acceptance means having been assented to the willingness of the offeror as held in (Stover v Manchester City Council, 1974)
Further, there must be at least two parties.
- Consideration- consideration gives life to a contract. Not wrong to say that it is backbone of a valid contract. Promises are based on some consideration which might be giving advantage or profit to one party at the disadvantage or cost of another (Currie v Misa, (1875))
- Legal capacity- The parties to the contract must have legal capacity to entre into a contract. Minor, individual restricted/barred by law, preson with unsound mind are not competent to form a contract.
Individual rendering consent under influence of drugs or drink are does not possess legal capacity. (Taylor v Provan , 1864)
- Free consent- free consent is also significant as contracts leads to legal rights and legal obligations. Free consent states that person is very much aware of waht he is consenting to.
- Legal relation- Legal realtion is to be intented. Unless such intention is there the contarct would remain incomplete. Intention of the party is presumed when it comes to monetary transaction ((Balfour v Balfour, 1991) and vice versa in case of social intercourse (Campbell v Campbell , 1932).
Illegal and void contracts