Contract Law - Relevant Law

Running head: CONTRACT LAW
CONTRACT LAW
Name of the Student
Name of the University
Author Note

CONTRACT LAW1
Issue
The issue that is to be discussed in the present scenario is whether there had been any
valid contract and due to such, whether there has been any breach of such contract and would
George be entitled to receive damages for such breach.
Relevant Law
Under the English common law, it can be understood that there are certain essential
elements of contract where the individual or the parties to a contract have to fulfil. If one of the
essential elements of the contract were not fulfilled then the contract would not be considered to
be valid. First, an offer needs to be made in a contract and such needs to be accepted. If there has
not been any acceptance to an offer in a contract then such would not be considered to be a valid
contract. It can be observed from the case of Chapelton v Barry Urban District Council [1940] 1
KB 5321. An invitation to treat is not considered to be an offer or a proposal. It lacks the
intention of creating legal obligations in a contract. It can be observed from the case of Carlill v
Carbolic Smoke Ball Company [1892] EWCA Civ 12. Secondly, the parties involved in a
contract needs to be legally bound with each other and therefore, if they do not have the intention
of being legally bound then the contract would not be considered to be valid. It can be
understood from the case of Merritt v Merritt [1970] EWCA Civ 63. Thirdly, the parties to the
contract are required to fulfil their promises or the conditions that have been laid down in the
contract. If they do not fulfil the conditions or the promises then such would constitute as a
breach and the party involved in such a breach would be liable to pay for the damages for such in
1 Chapelton v Barry Urban District Council [1940] 1 KB 532.
2 Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1.
3Merritt v Merritt [1970] EWCA Civ 6.

CONTRACT LAW2
a contract. It can be understood from the case of Stilk v Myrick [1809] EWHC KB J584.
Fourthly, the parties to the contract needs to have a legal capacity to enter into a contract and if
they are not of a legal age or of not sound mind then such contract would not be considered to be
valid. Such can be highlighted from the case of Simpkins v Pays [1955] 1 WLR 9755. Lastly,
there needs to be a certainty where the contract would be considered as complete, certain or clear
and therefore such would be binding in nature.
A verbal contract or agreement is considered to be an agreement that would be legally
enforceable in nature and it would also be binding in Australia except for some cases which
would be related to mortgage or buying or purchasing of any real estate or for taking out any
insurance. A verbal agreement can be considered to be enforceable as long as there has been
some kind of offer made and for such an acceptance has been made for which money would be
exchanged. All the essential elements under a valid contract needs to be fulfilled in order for it to
be legally binding. The absence of any one of these elements in a contract both written or verbal
would render the contract to be void and therefore, such would signify that the agreement would
not be considered to be enforceable in nature. In several jurisdictions the contracts are considered
to be represented in writing or needs to be oral and both would be enforceable under the law.
However, in spite of such there have been certain exceptions which have been created by the
statutory provisions which were designed in order to reduce fraud. The existence relating to an
agreement are considered to be usually analysed through the primary rules relating to offer and
acceptance where a clear indication of an offer is required by one party along with the
willingness to be legally bound on certain terms. This needs to be communicated by the other
4 Stilk v Myrick [1809] EWHC KB J58.
5 Simpkins v Pays [1955] 1 WLR 975.