Aspects of Contract: Definition, Elements, and Types

ASPECTS OF CONTRCAT

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A contract does not exist simply because there is an agreement between people. The parties to
the agreement must intend to enter into a legally binding agreement. This will rarely be stated
explicitly but will usually be able to be inferred from the circumstances in which the agreement
was made. For example, offering a friend a ride in your car is not usually intended to create a
legally binding relation. An agreement, even if supported by consideration, is not binding as a
contract if it was made without an intention to create legal intentions. That is, the parties must
intend their agreement to be legally binding (Ayres, 2012).
Contract is an official agreement. It could be written or even be in oral. Contracts can be written
by using formal or informal terms, or entirely verbal or spoken. It is a promise made between
two or more parties that which allow the courts to make judgment. A contract has six important
elements so that it will be valid which is offer, acceptance, consideration, intention to create legal
relation, certainty and capacity. If the main elements are not in contract, it would be an invalid
contract.
TASK 1
1.1
Contract is a promise made between the parties and that allow the court to make the judgment.
A valid contract is a agreement made between the parties on certain terms and conditions (Sweet,
Schneier, 2012).
. For the formation of the valid contract there must be theses element in the contract-
 Offer in order to create a valid contract there must be a valid offer or a lawful offer by
one party to another party. The offer is binding contract deals with promise made by the
parties. To make a valid offer it is must that a party would make an offer to other
party .offer can be make for specific person it can be for the whole world.
Acceptance this second element of a valid contract it means that after having a offer in the
contract there should be acceptance (Shiffrin,2007). To make the contract the offer and the
acceptance must be in the contract. These elements require in every contract. Other party

accepts the offer when they understand the offer made by the party. In between the offer and the
acceptance party negotiate on the consideration and when both the parties negotiate as they want
than they give their acceptance (Appleman, Holmes, 2015).
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 Consideration this is also the very important element of the contract. Consideration
means that the other party is would be giving back something in the return. Consideration
is not always in monetary that could be a promise to other party. And if the consideration
in the contract than the contract will be legally valid.
Capacity parties who make the contract they must be capable to come into contract it means that
they must have the legal capacity to come into contract (de Jong, Woolthuis, 2008).
 . Like minor who are below the age of 18 they have no capacity to enter into contract and
other like people those who are unsound mind, and the person who is bankrupt.
 Lawful object The contract is made on the lawful object. It is necessity of the intention
to create legal relation.
 Agreement to make the contract there must be agreement between the parties it can be
oral or written. In the agreement all the terms and the conditions are mention in and to
prove the agreement it is easy to prove when it is in written format (Chomsky, 2014)
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1.2
Bilateral agreement and Unilateral agreement
Unilateral agreement the unilateral simple terms, unilateral contract involve an action
undertaken by one person or group alone (. Bravetti, Zavattaro, 2008).
In contract law , in unilateral contract only one person to make a promise or agreement.
Bilateral agreement it means a bilateral contract is an agreement between at least two or group.
Most of the business and personal contract fall into that category.The most difference between
both the contracts is the number of the parties (Whalley, Gravelle, Sibbald, 2008).
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