Vicarious Liability: Principal-Agent vs Independent Contractor
Added on 2019-11-19
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Running Head: CONTRACT LAW Contract Law
CONTRACT LAW1Answer: 1 In Australia, all the important features which are an essential part of the contract to showthe existence of the creation of the lawfully binding contract are as follows:1.Agreement Agreement between the persons is the first important element to show the existenceof a legally binding contract. It is the earlier stage of the contract. For the formationof every single agreement, an offer and acceptance are two basic features. An offermust be transferred by the offeror with terms and conditions of the offer for theacceptance of the another party (offeree). Other party should be accepted the offerbefore any withdrawal of proposal by the offeror, Therefore Offeror is the personwho makes the offer and offeree is the one for whom such offer is made. But aninvitation to offer do not create offer or acceptance this is not an offer but the requestto create an offer. Mostly advertisement creates an invitation to offer (Treitel, 2003).2.ConsiderationConsideration is the second most important element of the contract to introducethe existence of the lawfully binding contract. For the validity of the contract,consideration is a necessary part which means that there should be an exchange ofany valuable thing between contracted parties. The contract without considerationis a void agreement. For the enforcement of a promise by the court, the other
CONTRACT LAW2party should also give any valuable thing in return. The values exchangedbetween the parties do not have to be equal (Treitel, 2003).3.Capacity Capacity is the third important element for binding force of the contract. The person who is minor and who is insane and not capable to understand the consequences of the contract cannot be the party to the contract. This means a person who obtains the age of majority and a person who is sane and capable to understand the consequences of the contract can be a party of the legally binding contract.4.Intention to be legally boundThe legal intention is also an essential point for the contract in which both partiesrelated to a contract should intend the type of their agreement whether suchagreement has a capacity to form the lawfully binding effect the party to theagreement will be under obligation to prove such effect (Treitel, 2003).5.FormalitiesThe contract should also follow all provisions which are given in the statute to bea legally bound contract (Treitel, 2003).6.CertaintyThe last element is a certainty. The contract should complete and certain to introduced the rights, timeframe, the responsibility of the parties. In the absence of certainty, court may declare such contract void on the basis of ambiguity.
CONTRACT LAW3Answer: 2 All the contracts are not lawfully binding contract. For the enforcement, such contract should have binding effect. The agreement can be oral or written. A number of people preferred only written contract in order to bind the parties. There are a number of dealings which needs a contract in writing like selling of a house, land or business dealing. But it does not happen in every case Verbal contracts are also actionable. a maximum contract which we do in daily life are mostly verbal contracts for example purchase a movie ticket, bus or air ticket, purchasing food, going to hospital etc. A verbal contract can be lawfully binding like written contract unless the law directs that such contract should be in writing (Bruce, 2014). As per the provision of the statue there are some essential elements for the binding effect which every contract has to follow includes:Agreement- when an offeror gives an offer to the offeree for the acceptance and offeree accepts the offer they said to make an agreement.Consideration- there should be exchange of any valuable thing between contracted partieslegal intention- the party while making the promise shall have an intention to bind each other legally such that in case of any breach by one party the other may sue (Nolo, 2006).However, oral contracts are very difficult to enforce because there's no clear record of the offer, consideration, and acceptance.
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