Formation of Contract Law: Essentials, Consideration, and Exclusion Clause

Formation of Contract
Law

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Essentials of a Contract .............................................................................................................3
TASK 2............................................................................................................................................5
Consideration..............................................................................................................................5
Intention to create legal relation..................................................................................................5
TASK 3............................................................................................................................................6
Exclusion Clause.........................................................................................................................6
REFERENCES:...............................................................................................................................8
Books and Journals:....................................................................................................................8
Online .........................................................................................................................................8

INTRODUCTION
The contract law of UK is derived from the common law system of UK. The contract law
specifies the provisions related to the formation and execution of contract. There are basically
four main elements of contract such as offer, acceptance, consideration and intention to create
legal obligations between the parties (Allen, 2018) . The contract law further explains about the
remedies that are available to the innocent party when there is breach of contract between the
parties. This essay explains about the exclusion clause and basic elements of contract law.
MAIN BODY
TASK 1
Essentials of a Contract
A contract is an agreement which is being made by two or more parties who have agreed
upon certain terms of the agreement. An agreement which is enforceable by law forms a valid
contract. Every contract is an agreement but every agreement is not a contract. The reason is the
recognition of that agreement in the eyes of law. Basically there are three requirements which
has to be fulfilled for the formation of a contract(McNamara, and Sepasgozar, 2021). First, there
must be an agreement made between the parties, there must be a legal intention to form a
contract, there must be an element of consideration in a agreement. The constitution of a
contract is based upon a valid agreement which is created only, when an offer is being made and
which is accepted by the other party. An offer is said to be formulated, when one party is ready
to give a proposal to the other party on certain specific terms which once get the acceptance from
the person to whom its is addressed, it becomes a binding agreement(Benoliel and Becher,
2019). . The person who makes an offer is known as an offerer and the person who accepts that
offer is known as offeree. It can be made to one or more persons (which also includes group of
persons )and globally, for e.g., A made a poster which reads, “that he will give 50 pounds to the
person who will find his lost cat,” with the description of his lost pet and placed it outside his
house. Now this can be treated as a offer which is made to the world at large. It is not important
that an offer is only expressed by words, it can also be indicated by the conduct of the offerer.
There is a difference between an offer and an invitation to treat. Because invitation to treat