Aspects of Contracts & Essential Elements
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Added on 2019-12-03
Aspects of Contracts & Essential Elements
Added on 2019-12-03
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TABLE OF CONTENTSIntroduction..........................................................................................................................................3Task 1...................................................................................................................................................31.1................................................................................................................................................31.2................................................................................................................................................41.3................................................................................................................................................4Task 2...................................................................................................................................................62(a)...............................................................................................................................................62(b)...............................................................................................................................................6Task 3...................................................................................................................................................73.1................................................................................................................................................73.2................................................................................................................................................73.3................................................................................................................................................9Task 4...................................................................................................................................................94.1 And 4.2...................................................................................................................................9(a)...............................................................................................................................................10(b)...............................................................................................................................................10Conclusion..........................................................................................................................................11References..........................................................................................................................................122
INTRODUCTION In modern era, law and contract play a very important role in the growth anddevelopment of society. It helps an individual to determine what the difference between right andwrong is. This report is based on various aspects of contract and it highlights some of theessential elements of a valid contract. Other than this, it also explains the various kinds ofcontract and different terminologies which are used in a valid contract. The difference betweentort and contractual liability is also described in this report. In addition to this, this report alsohighlights situation analysis of the provided case scenario and applicability of law on the samescenarios. TASK 1 1.1 It can be defined as the oral or written agreement between two or more parties which isenforced by law (Bolton and Dewatripont, 2005). It is a promise which is made by one party toanother and it allows court to make judgment regarding the same. Some of the essential elementsof a valid contract are provided below as:Offer Offer can be defined as the proposal to enter into agreement which is made by one partyto another. Making a offer is the first and the most important step of a valid contract. One of themain characteristic of a offer is that it can be either rejected, accepted or an individual can makecounter offer against the same (Curry, 2008). The offer can lapse in situations such as when theoffer is withdrawn before it has been accepted and when the time of acceptance gets expired. Acceptance It can be stated that in order to form a valid contract acceptance of the offer made is alsorequired (Kelly, Holme and Hayward, 2005). Acceptance is termed as An individual needs toaccept the offer as it is and no changes should be made in the same. It can be stated that onlyoffers can be accepted and an individual cannot make modifications and conditions in offer. Insituation where new terms and conditions are added by individual it is termed as counter offerwhich can be further accepted or rejected (Elements of Law of Contracts, 2012). 3
ConsiderationIn order to form a valid contract it is also required by parties to have a valuableconsideration (Ltd. Arlen, 2010). It can be defined as what each party agree to pay for thepromise of other. Most of the times it is in monetary forms but consideration can be anythingwhich has certain value. Intention to create legal consequencesIt is required by the parties which are entering into contract to have a intention to createlegal relationship (Romano, 2005). Further the parties are required to understand the fact that thecontract which they will form can be enforced by law. 1.2 Based on nature and characteristic there are three major type of contract which areprovided below as: Face to face contract-It is kind of agreement which is formed when all the parties arephysical present at the time of contract (Siedel and Haapio, 2010). Most of the times suchkind of contract is made with the help of spoken words but it may also include writtenformat. The example of such kind of contract is a person buyiWritten contract- It is one of the most common form of contract which has a writtenevidence regarding the terms and conditions on which both the parties have agreed upon.Business, organizations and individuals are the parties which can be entered into suchkind of contract (Types of Contracts, 2015). It is required by parties to sign the writtenagreement which has all the terms and conditions. Example of this can be a contractbetween employer and employee. It is required by both of them to sign a writtenemployment contract. Direct selling contract -Direct selling contract is an agreement between a company andagent who is authorized to sell the products and services of company on its behalf. Someof the major details which are covered in such kind of contract is limitation regardingterritory, liability, commission to be paid etc. 1.3 Contractual terms can be defined as any provision which forms a part of contract. Someof the important terms are provide below: 4
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