Formation of Contract and Agency Contract: A Practical Approach with Case Law

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
QUESTION 1...................................................................................................................................3
QUESTION 2...................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A contract refers to an agreement which is enforceable by law and contain a valid
consideration. For the formation of contract there must a requirement of existence of certain
elements including offer, acceptance, consideration and enforcement (Chalkidis,
Androutsopoulos and Michos, 2017). In case of agency contract also there will be same
conditions except the involvement of additional third party called agent. In this report a practical
approach with the formation of valid contract will be presented with the context of case law.
Likewise, an agency contract will also be presented in the report.
QUESTION 1
Contract:
As per the contract act it is an agreement which is enforceable by law and it will give rise
to obligations. This means that in order to form a contract there must be agreement (Chalkidis
and Androutsopoulos, 2017). It is also to be noted that an agreement will be form when one part
will make an offer which will be accepted by another party.
Conditions for forming the contract:
There must be three main conditions and requirements for the formation of contract:
Agreement:
It is an essential aspect with the formation of contract. It will be come into effect when
there will be an offer by one party which will be accepted by another and it will ultimately lead
to the formation of contract.
Offer:
It is an expression to contract with the inculcation of specified terms and conditions and it
is made with an intention that it will be binding on other person who will make acceptance.
Acceptance:
It a final and unqualified assent of the opposing part with regard to the terms and
conditions of offer (Smits, 2017).
Consideration:
There will be no use and implication of promise until there will be come value and
consideration involved in it. This means that a promise will be valid only with the presence of
some consideration.