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Components of a Binding Contract

   

Added on  2020-04-07

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1Cover PageName of the studentStudent IDWord count
Components of a Binding Contract_1
2ContentsAssignment..................................................................................................................................................3Answer 1.................................................................................................................................................3Components of a binding contract.......................................................................................................3Answer 2.................................................................................................................................................3Oral and written contract – which is better?........................................................................................3Answer 3.................................................................................................................................................4Formal contracts and basic requirements.................................................................................................4Answer 4.................................................................................................................................................5Case study based on legal intention in a contract.................................................................................5Answer 6.................................................................................................................................................6Principal – Agent & Principal – Independent contractor.....................................................................6Bibliography................................................................................................................................................8
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3AssignmentAnswer 1Components of a binding contractA binding contract is an agreement which is enforceable and valid in law. In order to make avalid contract, the main components that are required are: [ CITATION Cla133 \l 1033 ]i.An offer – When the offeror communicates his desires to an offeree in the form of astatement or proposal, then, it is called an offer. An offer can be written or oral in natureand can be made to one single person or to the entire world and is held in [ CITATIONCar936 \l 1033 ]. ii.An acceptance – An acceptance is the approval of the offer by the offeree. an acceptancemust correspond to the terms of offer in order to be valid in nature. an acceptance oncemade can only be revoked provided it is not within the knowledge of the offeror and isheld in [ CITATION Bri836 \l 1033 ].iii.Consideration- When an offer is supported by an acceptance then it is an agreement inlaw. But, to convert an agreement in a contract it is necessary that it must also containsome kind of benefit which is moved amid the parties for exchange of promises. Thisbenefit is called consideration in law. A consideration must be of some value but shouldbit be illusionary in nature and is held in [ CITATION Bio881 \l 1033 ]iv.Capacity of the parties – The parties are said to be eligible to enter into a contract if theyare not barred under law, are major and has mental capacity to establish a contract and isheld in [ CITATION Nas082 \l 1033 ].v.Legal intention of the parties – The parties must have legal intention, that is, they arewilling to enforce the contract legally. Any contract which lacks legal intention is notvalid in law and is held in [ CITATION Bal198 \l 1033 ].Thus, threes are the main five components that must be present amid the parties in order toestablish a legally valid contract. Answer 2Oral and written contract – which is better?It is not necessary that the contract must be in writing in order to be valid in nature. In law, in order to make a valid contract the basic requirements are its essentials, that is offer,acceptance, consideration, legal intention and the party’s capacity. When all theserequirements are met then the contractual parties can establish a contract regardless of itsnature, that is, a contract can be made verbally (oral contract) or it can be made textually(written contract). The validity of both the oral contract and written contracts are rightlyestablished in the leading case of [ CITATION RvC272 \l 1033 ]. [ CITATION Lat129 \l 1033 ]
Components of a Binding Contract_3

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