Validity of Contract in Contract Law

CONTRACT LAW

Table of Content
Introduction......................................................................................................................................3
Validity of contract..........................................................................................................................3
Evaluation of agreement among parties..........................................................................................4
Case 1 Fred and Lottie.................................................................................................................4
Case 2 Fred and Sam...................................................................................................................5
Case 3 Fred and Maria.................................................................................................................5
Recommendations for forming a valid contact................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
A contract is a voluntary and legally binding agreement within two or more parties. Contractual
agreements are lawfully enforceable because it is duly approved and supported by the
requirements of the law ( Kovac, 2018). In agreement following transactions can be involved for
example services, money, exchanges of goods or promises of any of it. In case the contract in
breached by any of the party then the law is supposed to award the injured party to access the
lawful remedies to compensate for damages due to cancellation. In the present study, agreement
among the parties has been evaluated to determine its validity and legal enforceability. The study
will consider whether there was a presence of contracts among the parties or not; this will be
evaluated by considering whether or not there is the existence of essential elements of contracts.
The study is supported by key facts, justifications and cases to research at a valid conclusion.
Validity of contract
As per the w for making the contract, an agreement mainly needs an offer consideration, mutual
intent to be bound and acceptance. Every party should have the capability to enter into a
contract. Even though when there are oral contracts they are also legally binding.
In accordance with the law, for making a contract, the offer and acceptance are the two most
essential elements. The contract should be made by the person’s willingness or with the intention
of entering the binding agreement by law (Cartwright, 2016). When an individual wants to enter
into a contract with its own will on certain terms and mean to form a binding contract, and if the
party agrees upon the term, then such expression of readiness is known as an offer .
An invitation to treat is just an announcement of readiness to go into discussions; it is not an
offer, and this cannot be established in the form of a binding contract. Invitation to offer is a step
initiated before an offer. In this process one person encourages another person to make an offer
to him that is called an invitation to treat. In a situation where the other parties react upon the
invitation to treat than it will be considered as the offer(Little, 2017). The invitation is made to
the general public with the intention to receive offers and discuss the conditions on which the
contract is made.