Project on Formation of Contract
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Added on 2020-01-21
Project on Formation of Contract
Added on 2020-01-21
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Contract Law Problem Question
Table of ContentsINTRODUCTION..........................................................................................................................................................3QUESTION 1..................................................................................................................................................................3CASE:1................................................................................................................................................................3CONCLUSION...............................................................................................................................................................8REFERENCES................................................................................................................................................................9
INTRODUCTIONThere are many business activities which taken place on a daily basis. One of the most important act whichis being carried out in the regulation of a business activity is the formation of a contract. It is very important thatwhenever any formal exchange of promises is being taking place in an organisation then a proper agreement shall bemade between the parties as any agreement between the party shall conclude to the formation of a valid contract. Inorder to save the interest of the party who are contracting with each other, government has implemented severalrules and regulation by legislative body and one of the major law regarding same is contract law which will dealwith all the provision of contract(Byrd, and Hruschka, 2012). It is very important to form a contract with theapplication of law as it will raise legal obligation on breach. The following project shall discuss the case law dependupon the provision of contract. The aim of the project is to carry out a better understanding about formation of acontract.QUESTION 1CASE:1 A contract can be referred as an agreement which has been formed between the parties voluntary, bindingboth the parties to perform legal obligation arising out of it. Whenever an agreement is enforceable by law, then itshall became a valid contract(Vogenauer, 2013). It is very important that whenever a contract is being formedbetween the parties then all the essential elements are to be included. When a formation of a contract shall take placewithout any elements then such contract shall be entitled as void. Breach in contract will arise out of the terms andelements mentioned in a contract. Some of the basic essential elements, to be included in the formation of a contractare:-Offer- an offer to a contract can be explained as the desire which a party shall arise out of any act. For the formationof a valid contract, it is very much important that a valid offer shall be made between the parties. If the offer is notbeing included in a contract, then there shall be no valid formation of a contract.Acceptance- whenever an offer has been made by one party to another then if the other party wants to enter into acontract, can accept the offer. An acceptance to a offer shall show an intention of the other party to enter into acontract(Eidenmuller, Jansen, and Wagner, 2012). Without acceptance, no contract shall be formed.Consideration- it can be explained as the exchange of value which is being done between the parties. Such exchangeof value is always dependent upon the promise which is being made by both of the party in a contract. It is veryimportant when the formation of a valid contract is being taking place then a lawful consideration has to be madebetween the parties. If the consideration will be unlawful in nature then such contract shall be entitled as voidcontract. Consideration can be done in written or in oral.Agreement- prior to the formation of a contract, it is very important to form an agreement between the parties. Suchagreement will raise legal duties or shall raise legal obligation on to the parties by binding them into acontract(Furmston, Cheshire, and Fifoot, 2012). An agreement made between the parties could be negotiable also.Any kind of breach in an agreement shall result into breach in contract.
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