Formation and Implication of Contract

This report discusses the formation of a contract and its implications on different parties. It also explores the obligations of parties in a contract and the legal consequences in case of breach. The importance of fulfilling the terms and conditions of a contract is emphasized, as well as the rights of parties in case of breach.

CONTRACT LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
3) Formation of contract and its implication attains on different parties.........................................3
4) Obligation of parties in contract and legal consequences in case of breach committed by any
of the parties in contract...................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Contract law is mainly imposed on the parties in respect of entering into any contract in
relation to dealing in any such activity. It is one of the types of agreement which is formed
between the parties in respect of entering into the valid contract (Adriaanse, 2016). Thus,
contract law refer to the body of law which is imposed in respect of protecting the rights of the
buyer and sellers and imposing strict restriction in respect of breach committed by any of the
parties during the period of contract. Present report is based upon determining the formation of
contract and also its implication in respect of undertaking different parties. It also includes the
obligation which is imposed in the context of parties and also its legal consequences in respect of
breach committed in contract.
3) Formation of contract and its implication attains on different parties
Contract is valid if it carries the proper procedure to enter into the agreement which
results in entering into the mutual agreement regarding fulfilling the promises which is made
between the parties. Thus, in such manner the contract is formed when both the parties enter into
the agreement regarding dealing in certain aspects which results in gaining profits (Andrews,
2015). The aspects is relating to buying or selling goods or services or hiring any person to
accomplish the task or any other matter which enhances the validity of contract.
Contract is formed so that they bound parties legally and carries various terms and
condition which is mentioned in the contract. As every parties are equal in the eyes of law and
thus, the punishment are to be imposed in respect of breach committed in not following any of
the terms. Thus, in respect of undertaking the matter related to formation of contract, it carries
following elements such as:
Offer and acceptance: In this aspects, one party offer products or services in respect of expanding
the business or gaining profits and if the other party accepts such offer than they both enter into
the agreement and such agreement is bound legally (Beale and et.al., 2019). As all agreement are
contract but all contract are not agreement. Thus, in such manner in respect of formation of any
contract this is the basic criteria of entering into any contract.
Promise: As promise is to be made in respect of fulfilling the terms and condition and in case of
breach committed by any of the parties, the compensation is to be set in contract.

Consideration: It is necessary the agreement is made on the bases of monetary amount. As
parties decided the particular amount before entering into any contract (Poole, 2016). Thus,.
Consideration is necessary in respect of formation of any contract.
Capacity of the parties: The parties must be competent to handle the task and also they attain the
age of majority. Thus in such manner, they carry the liabilities to fulfil the terms in better way.
Thus, in respect of attaining the implication in respect of different parties as if they are
entering into any contract, they are legally bound by law (Khorooshi and et.al., 2017). They carry
the liability to fulfil the terms and conditions which is mentioned in contract in better way so that
the results of breach not arises in any respect.
4) Obligation of parties in contract and legal consequences in case of breach
committed by any of the parties in contract.
In contract, the obligation which is examined in respect of parties which they had to fulfil
are in respect of attaining the terms and condition in better way. As both the parties exchanges
some monetary amount or other valuable things before entering into any contract. Thus,
obligation arises in respect of undertaking such norms in better way as they both attaining some
risk by entering into the contract regarding accomplishing the particular task (Austen-Baker,
2017). As the parties re mutually agree with the terms and condition which is mentioned in
contract and thus,. They had to follow such term in respect of making the contract valid. In
respect of identifying the various elements in contract which is described before, are in context
of obliging the parties to follow it before entering into any contract.
Breach is committed in respect of not following any of the terms which is mentioned in
contract or also which affecting the right of the parties. Thus, in such manner the consequences
which arises through breaching the contract are resulting to availing the rights of the parties
which are considered to be offences under the contract act. During preparing the contract, most
of the parties enter into the terms regarding committing breach in any of the terms. Thus, in
respect of compensation which is to be paid once the breach is committed is resulting to getting
payment from the actual loss incurred (Breach of Contract Law: Legal Claims for Breach,
Termination, the Consequences & the Remedies, 2019). The other party which is plaintiff,
suffered breach from the defendant party, in such case they carry the right to file compensation
for the losses incurred.

As breach also carries various types such as delayed breach in which party not perform the
contract within stipulated time or in respect of defective breach, they partly performed the
contract. In case of non performance of contract, they not performed any of their duty thus in
such cases the punishment or compensation is to be imposed according to the nature of the
breach.
CONCLUSION
From the above study, the report concludes regarding the overall integrity of the contract
which the parties are obliged to fulfil under the contract act, 1919. before entering into any
contract, parties must fulfil various terms and condition which are mentioned under the contract
so that both are obliged to fulfil it in better way. In respect of determining it implication
regarding the contents which in mentioned in respect of formation of contract are to be
undertaken so that parties are legally bound to fulfil all of the terms to make the contract valid
and useful. In context of undertaking the matter related to breach in contract, it is committed by
any of the parties and such breach must be resultant to within the existence of the contract.

REFERENCES
Books and Journals
Adriaanse, M. J., 2016. Construction contract law. Macmillan International Higher Education.
Andrews, N., 2015. Contract law. Cambridge University Press.
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Beale, H. and et.al., 2019. Cases, materials and text on contract law. Bloomsbury Publishing.
Khorooshi, A. and et.al., 2017. Basis of Contract Clause in the UK and the Necessity for
Reforming Insurance Law in Iran. J. Pol. & L. 10. p.156.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Online
Breach of Contract Law: Legal Claims for Breach, Termination, the Consequences & the
Remedies. 2019. Online. Available through: <https://hallellis.co.uk/blog/breach-contract-
meaning/>.