Elements & Types Of Contract - Assignment
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Added on 2020-01-28
Elements & Types Of Contract - Assignment
Added on 2020-01-28
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Table of ContentsINTRODUCTION...........................................................................................................................31.1 ................................................................................................................................................31.2 ................................................................................................................................................41.3.................................................................................................................................................42.1.................................................................................................................................................52.2.................................................................................................................................................52.3.................................................................................................................................................6TASK 2............................................................................................................................................73.1.................................................................................................................................................73.2.................................................................................................................................................83.3.................................................................................................................................................84.1.................................................................................................................................................94.2...............................................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONDifferent laws along with legal regulations have been introduced by the regulatoryauthorities with the motive to reduce the level of unfair transactions and this directly supportsbusiness enterprise to indulge into practices which are illegal (Johnston, 2014). Further, whentwo parties enter into contract then they are bound to carry out operations as per the legalguidelines and it is necessary to provide damages to the parties who have suffered loss.Moreover, it is necessary for entire commercial environment to protect parties which are weak.Different provisions along with laws have been introduced which assists in providing protectionto the parties in the contract. The present study being carried out is based on various cases anddifferent tasks have been covered in the report which includes important of essential elementsrequired for formation of valid contract, terms in different type of contract, contrast liability intort with contractual liability etc. 1.1 Contract is generally regarded as the legal document linked with both the parties whichbinds them into contractual liability and in turn is required for legal compliance (Heine andKerber, 2002). Essential elements which are required in case of formation of valid contract are asfollows:Offer: It is a kind of willingness to develop contractual obligation which states that terms andconditions in agreement. Further, offer is subject to intension of contractual liabilities along withthe legal compliance. Obtaining updated offer over the original one at the time of negotiatingterms in contract is regarded as counter offer. The principles associated with case law Harvey vFacey [1983] reflects that it is required for parties to show intention at the time of accepting anyoffer.Acceptance: This term highlights the expression of unconditional agreement of all the termslinked with offer (Gray, 2010). Acceptance takes place when both the parties agree on the termsand conditions present in the contract. The case law Felthouse v Bindley [1862] highlights thatintention to purchase horse was not expressed by nephew which lead to occurrence of nocontract in between the parties. Consideration: This element is considered to be most important where parties in the contractmust receive something of value in return at the time of building legal compliance. As per theEnglish law consideration is a form of promise.3
Legal intention: Both the parties in the contract must have legal intention. Any type of contractwhich is being developed for illegal activities is not regarded as valid contract. 1.2 Every type of contract is being built on the basis of obligations and terms. Further,different types of contract which are defined under English law are as follows:Unilateral contract: In this type of contract one party associated with the contract has tocarry out contractual obligation where other parties are free to carry out obligations. Theofferor in the contract builts an open offer (Types of Contracts. 2012). Further, therevocation in the offer can be done anytime before its completion. The case linked withCarlil v Carbolic Smoke Ball Company [1893] highlighted obligation of firm to payreward to claimant as individual suffered from flu after using productBilateral contract: This contract takes place between two parties through mutualexchange of promises. All the major elements in valid contract are required to beundertaken by parties and in case if they are not followed then suffered party has right totake legal actions. Considering the case of Brogden v Metropolitian Railway [1877] theobligation of performance of contract took place after acceptance of all the terms (Bell,2011). Collateral contract: it is defined as the one where development of one contact ispromised by one party as consideration of first contract. The main requirement is to buildcontractual obligation. 1.3The terms associated with the contract supports in knowing about the obligations forperformance of the agreement. Different terms associated with the contract are as follows:Expressed terms: It involves the stated terms in the contract which are agreed by partiesin the contract. Further, it can be both in written or oral form and undertakes bothconditions and warranties. In case if any condition is not fulfilled in the contract then itleads to breach of contract (Fried, 2015). Apart from this warranty is secondary termwhich relies on contractual obligation. In case if any party non complies with any of theterm then they are liable to pay for the damages. Implied terms: These are some of the main terms which are not highlighted throughexpression but they are implied by court of law. Implied terms allow in developing4
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