Aspects of a Valid Contract (pdf)
Added on 2020-01-07
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Aspects of Contract
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1................................................................................................................................................31.2................................................................................................................................................41.3................................................................................................................................................5TASK 2............................................................................................................................................52.1................................................................................................................................................52.2................................................................................................................................................62.3................................................................................................................................................7TASK 3............................................................................................................................................73.1................................................................................................................................................73.2................................................................................................................................................83.3................................................................................................................................................9TASK 4..........................................................................................................................................104.1..............................................................................................................................................104.2..............................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES .............................................................................................................................12
INTRODUCTIONThere are many business organisation and companies which have been facing problemstowards carrying out their business. It is a clear fact that there are many business organisation inthe world which have various business activities to carry on. (Clarke, Lancaster ,2013)Theseactivities shall include transfer of basic assets, making deal with other companies, creatingcontract between the parties and to safeguard such activities government has certain regulationsand norms which shall govern all the regulatory actions regarding business activity. Thefollowing project will give a brief discussion on formation of a valid contract and how it shall becarried out by various other industries. The project will cover all the basic aspects of contract anddemonstrate its importance in business world.TASK 11.1When the parties possess the intention to enter into a contract, it is very importantfor them to form a valid contract. For the formation of a valid contract it is essential that all thekey elements shall be included,(Slišković Penezić, 2016.) it is because in the absence of anyessential key element, the contract which have been formed by party hall became invalid by ruleof law. There are few principle which shall be included in the formation of a valid contract andthose are:-Presence of Parties- it is important aspect while in the formation of a contract that there shall be2 or more parties to be present in a contract. A single individual cannot make a valid contractwith himself, so it is important that while any contract shall be made there will always be 2 ormore parties presentationOffer- the first key principle towards the formation of a contract is that one party should makeoffer to another party over a lawful object. If a party is interested in creating a contract withinthen he must make an offer to another partyAcceptance- when the offer has been made by one party then, if the another shall accept theoffer if deems fit. To enter into a valid contract it is important to accept the offer which has beenmade.Consideration over lawful object- when the offer has been accepted by one party, a considerationshall be created by both the parties over a lawful object. Consideration is an important aspect of
contract formation, without which contract cannot be considered valid(Appleman, Appleman,Holmes, 2015)Agreement- with all the key essential mentioned above, an agreement has been made betweenthe parties in which parties shall be bind over legal obligation to follow the contract. If suchcontract shall not be followed then it shall result into legal obligation to both or either of theparties CASE LAW: Balfour V. Balfour1.2There are various kinds of contract which have been formed by the parties. It it reallyimportant to form various kind of contract as they have different impact on execution ,depending upon the situation. The contract has been formed according to situation or the need ofparty hence the various kinds of contract are:-Face to Face contract:when the contract has been formed between the parties in person that shall be accounted as faceto face contract. The impact of a face to face contract is very strong. In such contract atransparency has been maintained as well as there shall be accountability by which all thenecessary key elements shall be highlighted and if any doubt arise between the parties then it willbecame easy to clarify it.Written Contract:when the contract has been formed in written form that is all the activities related to contract hasbeen carried out in written documents. (Chomsky, 2014.)The impact of a written contract is verystrong on the parties as well as in eyes of court of law. When a contract has been carried out in awritten form it became a concrete evidence in eyes of law. Hence a proof can be created bymaking a written contractDistance Selling contract:the contract which have been carried out at distance between the parties it shall be denoted asdistance selling contract. Such contract are either carried out on telephone or on the phone. Theimpact of such contract is weak as there shall be no accountability and transparency in this kindof contract. Hence these are some of the essential types of contract which have been formed between theparties.(Qi, Chau, 2015.)
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