Considering Different Elements of a Valid Contract

Added on -2020-02-05

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ASPECTS OF CONTRACT ANDNEGLIGENCE FOR BUSINESS1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3ASSIGNMENT NUMBER: 1. PROVIDE LEGAL ADVICE .......................................................3Case 1 (1.1, 1.2 and 1.3)..............................................................................................................3Case 1 (2.1, 2.2 and 2.3)..............................................................................................................4Case 3 (3.1, 3.2 and 3.3)..............................................................................................................5ASSIGNMENT NUMBER: 2. EVALUATION TASK..................................................................64.1 and 4.2....................................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES ...............................................................................................................................92
INTRODUCTIONAspects of contract are termed as several elements which are required to consider whilemaking valid contract. This report presents various legal factors that are considered by bothparties to convert an agreement in a legal contract (Alshubaiki, 2013). This report examinesvarious situations by considering different elements of a valid contract. In addition to that it alsoanalyzes negligence of business with reference to different scenario.ASSIGNMENT NUMBER: 1. PROVIDE LEGAL ADVICE Case 1 (1.1, 1.2 and 1.3)As per the give case, Bob (purchaser) and Sam’s (seller) of book require to considerseveral elements in formulation of valid contract: Offer and acceptance: Itis termed as most significant aspect of a contract. It can bestated that without a lawful offer and acceptance a contract cannot become valid.Offer isthe first step of making contract. This entails that one party is giving invitation to anotherto enter into some legal or contractual relationship. However, the contract will be formedbetween parties if the invitation as being given by one individual will be accepted byothers. Here, in the given case, Sam has given invitation to Bob by displaying book at thecounter. Legal Relations: There must be a legal goal and consideration between the parties thathas to be disclosed in agreement in the form of outcome and commitments (Connolly,2013).The parties who have decided to enter in the contract must show their intention toenter in the legal relationship. This is because, if it would not happen then in the givencondition, legal relationship will not be formed between parties. In the given case, Samhas displayed the book in shelf which depicts that he has an intention to enter in the legalrelationship. Lawful consideration: The presence of a lawful consideration has been considered asmost important part of valid contract. In addition to this, it can also be said thatconsideration is something which one party gives to other in return of something. Forexample, in the case, consideration can be in the form of money and book. Here, for Sam,3
consideration would in the form of money. However, for Bod, it will be in the form ofbook. Free consent: In the context of valid contract, both parties must be agreed on similarconsent. In the situation of fraud, free consent is totally absent. Lawful object: A valid contract is required a valid goal. Legal Formalities: It must fulfill all legal formalities that are essential for development oflegal contract such as registration and receipts, etc. (Baskind, Osborne and Roach, 2013).Capacity of parties: Both parties must be able to meet different compliance of law;otherwise it cannot be implemented as per the law. Certain or meaningful contract: It should clear all elements of contract. As per the case, there is no valid contract identified between Sam and Bob even thoughsome elements of contract are present in the respective case. This is because, while taking bookat the counter of Sam, Bob had explored that the book was already sold to Carl. It is the reasonbecause of which Sam has refused to sell the book to Bob. Thus, it is correct to say that there isno valid contract in between both the parties as all essential elements of a valid contract are notfulfilled in the present case.There are mainly two types of contracts such as written and verbal used to manageparticular agreement. Written contract is the type of contract which is formally written andauthorized by both the parties on some specific written documents (Elements of Law ofContracts, 2012). It is the most common form of contract. The contract is effective as hereparties have the written proof of all the terms and conditions which are decided between them.Hence, with the help of given proof, individuals can create a legal binding on the other party incase if the respective person will not comply with the terms and conditions of contract. On the other hand, Verbal agreements are based on the good faith of both parties who areinvolved in particular contract. Here, all the terms and conditions of contract are decidedverbally. Hence, parties do not have any written record of conditions which are specified bythem. In the present case, there is verbal or face to face communication carried out by both theparties, that is, Sam and Bob.Some important terms of a contract is explained as below:4

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