The Contract Law of Australia - Assignment


Added on  2019-10-31

10 Pages2457 Words144 Views
Running Head: BUSINESS LAWBusiness lawName of StudentName of University

BUSINESS LAW2Answer 1:The contract law of Australia has been adopted from the corresponding law of Englandwith some modifications and developments. Under the Australia contract law the essentialingredients to form a valid contract enforceable in the courts of law are identical to those whichare basically required in other countries. The essentials required to form a contract are asfollows:(1)Agreement Agreement is the first requirement to form a legally binding contract. Anagreement is formed when an offer or a proposal is made by one person byexpressing his willingness to another to do or not to do a certain act with anintention and in order to get an acceptance from that other person to whom suchan offer is made. The person making the offer is called an offeror while the personto whom the offer is made is called an offeree. When the offeree accepts to actaccording to the willingness of the offeror, an agreement is said to have come intoexistence. Such an agreement may be for lawful or unlawful purpose (Treitel,2003).(2)Consideration One of the most essential ingredient to form a legally binding contract isconsideration. Consideration is anything which is given in lieu of the promise ofact or omission. An agreement is incomplete without consideration having beenattached to it. A lawful consideration shall be attached to an agreement to make it

BUSINESS LAW3legally enforceable. A consideration may be anything which has monetary value(Treitel,2003).(3)CapacityThe term capacity means the capability of a person to enter into a contract. Thelaw prohibits certain persons from entering into a contract for the reason that theyare incapable of understanding the legal consequences of the contract. Under lawa person who is of sound mind and has attained the age of majority as requiredunder the law by which he is governed and has not been prohibited under any lawfrom entering into a contract may become party to a legally binding contract(Treitel, 2003).(4)IntentionFor the purpose of entering into a legally binding contract the most essentialingredient is an intention to enter into legal relations and to bind each other withthe rights and obligations attached to the contract (Treitel,2003).(5)CertaintyThe term certainty implies that the terms of the contract shall be certain and notambiguous so as to make the contract void. An ambiguous contract will make thecontract void (Treitel, 2003).Answer 2:A contract, in order to be legally enforceable, is not required to be put into a written form.The essential requirements to make a contract legally binding are offer and acceptance,consideration, capacity of the parties, intention to enter into legal relations and certainty of the

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