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ASSIGNMENT 2
Date:
Civil Law

Assignment 2
Table of Contents
Task 1...................................................................................................................... 2
Task 2...................................................................................................................... 5
Task 3...................................................................................................................... 7
Task 4.................................................................................................................... 10
Bibliography.......................................................................................................... 13
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Assignment 2
Task 1
a) Contract – Under the law of contracts, “a contract is an agreement between two or
more parties, where such agreement is intended to be legally enforceable at law”. In
such cases, if one part breaches such contract the other holds a right to bring a legal
action against the party breaching such contract. All the contracts are agreement but
not all the agreements have been termed as a contract. Every contract which is legally
binding in nature comprises of six elements:
1. An intention to bring into existencet a legal relation
Example- A and B jointly decided to go for a fishing competition. Both
consented to equally divide the prize money. They proportionately contributed
to the expenses along with competition fees. A won the competition but
denied to share the winning amount with B and as a result B dragged A to
court.
2. An offer and an acceptance (can be to an individual or an open offer).
Example- Daisy offers to sell her bike to Peter. In an auction, biding is an
offer whereas acceptance is expressed by dropping the hammer by the
auctioneer.
3. A valid consideration
Example- A peppercorn rent of $1 per year in exchange of a cross lease
contract is a valid consideration.
4. Capacity to enter into contract (not minor, not mentally and intellectually
insane and not declared bankruptcy)
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Assignment 2
Example- A is a 12 year boy who gets into a contract with B who is a major. A
doesn’t fulfil the terms and breach the contract. B cannot bring any action
against A as a being minor makes the contract void ab initio.
5. A free and genuine consent (free from undue influence, misrepresentation,
duress, mistake)
Example-Duress is a use of force with a purpose to get consent of an
individual. In this context, under a less obvious behaviour when one tries to
contact a client at late night hours in order to conclude a sale or pressurising
by referring to short of time for negotiation.
6. Legality of purpose(the purpose to enter into a contract must be legal)
Example- Neil entered into a contract to provide drugs to bran in exchange of
money. Neil as promised bought the drugs but Bran denied making the
payment. Here Neil holds no right to claim the payment as the act of providing
drug itself stand as illegal thus making the contract void.
b) An agreement of sale and purchase of real estate to get executed under law- Under section
24 of the Property Law Act 2007, there exist two essential requirements for an agreement of
sale and purchase of real estate to be enforceable under the law. The first is that such
agreements relating to the property must be in written form. Thus these agreements must be
on paper and not just verbally performed. Another requirement is that such written agreement
must be signed by both the parties in order to get it acknowledged by both.
c) Once offer is made:
i. In case Moana changes her mind before accepting the offer, which is a usual course of
action in contract scenarios, then no contract shall be formed between Moana and
James thus creating no legal obligation between the two.
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