The Council on Foundations Compendium of Legal Resources

FOUNDATION OF LAW

Issue
The issue in the given case study is to determine whether Joe has any legal rights
against the makers of the 'InvestorPlus' software or not. The analysis would be based on the
various provisions of the Contract Law as well as the Unfair Contract Terms Act.
Rules
The rules regarding the above order are mentioned at length hereunder. The contract
law comprises the various provisions that govern the manner of creation, termination and the
administration of the contracts. As per the said provisions, an agreement stating the
respective rights and duties of the parties would be regarded as a contract, on the fulfilment
of certain conditions as elaborated as follows.
The first condition is that the parties must be capable of entering into a contract. This
means the parties intending to be part of the contract must not belong to the following
categories that are the minor, persons possessing unsound mind, or a person under the effect
of the alcohol or other kind of intoxication. Thus, a person that is not in the proper state of
mind to understand the terms of the contract would be barred from entering into contract
(Corporate Guide Singapore, 2020). The second condition for an enforceable contract to be
created is that there must be valid offer and acceptance. Thus one party must offer the terms
and conditions and the other party must accept the same in the absolute manner. In this regard
it must be noted that an advertisement is not an offer but an invitation to treat. When one
party comes across an invitation to treat, he or she must extends an offer to the other party
and when the other party accepts it as it is, the agreement comes into existence. In addition,
the third condition of the presence of the consideration must also be fulfilled (Asia Law
Network, 2017). An agreement without consideration cannot be regarded as a valid contract.
Thus, the parties must exchange something of value with each other in return of the
performance or not performing a certain act. Further condition states that the parties must
intend to be bound in a legal relationship and thus the agreements between the family
members are not considered as a legally enforceable contract in the eyes of the law. By the
virtue of the last condition, it must be ensured that the terms and conditions of the contract
must be certain and not vague or ambiguous, to be construed in a similar manner by both the