Formation and Implication of Contract

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.