Contract Law: Understanding the Elements, Rules, and Unavoidable Terms

A contract is not worth the paper it is written on, as one can break it
anytime through all its unavoidable loopholes
What is contract?
A contract is a legal document that consists of certain promises and both the parties to the
contract bound to the contract. A contract is taken as a serious promise where any of the parties
can face legal consequence if make any breach regarding it. Therefore, it is necessary for the
parties to read and understand all the terms of the contract.
Elements of contract:
There are certain common rules regarding the formation of a contract. According to the common
law provision, a contract can be executed if the following elements have been fulfilled:
 Offer and acceptance;
 Intention of the parties;
 Capability of the parties; and
 Consideration
Rules regarding the contract:
According to the general rules of contract, all the terms of the contract will be imposed on the
parties once both the parties have signed it and the parties are obliged to maintain all the terms of
the contract mandatorily. The parties of the contract have an option to reject the terms of the
contract before the terms of the parties have accepted the contract. However, once the offers of
the contract have been accepted, it becomes legally acceptable and the breaching party will have
to face legal consequence. According to L'Estrange v F Graucob Ltd [1934] 2 KB 394, once the
contract has been signed, the parties are bound by the terms of the contract. However, certain
exceptions have been pointed out in this case regarding the formation of the contract. A contract
can be vitiated if any unavoidable terms have been included under the contract. There should be
certain flexibility regarding the terms of the contract and in that case, the validity of the contract
could be stable. According to the general rules of the contract, both the verbal and written
contracts are valid in nature. Certain time provisions should be mentioned in the contract;
however, the parties can terminate the contract at any time in case of any unavoidable terms.
Unavoidable terms:
According to the general rules of contract, all its provisions will be mandatorily imposed on the
parties once both the parties have signed it. However, in reality, we can see certain loopholes
regarding the contract. The law of contract is based on the principle of equity and therefore, it is
important to analyze whether all the terms of the contract is fair or not. If any unavoidable terms
have been included in the contract, the affected party can terminate or break the rules of the
contract at any time. There are certain situations where the parties to a contract are allowed to
make breach regarding the contractual terms legally. Certain common unavoidable terms are as
follows:
 Incapacity of the parties;