Essentials of a Valid Contract and Remedies Available Under Contract Law

INDIVIDUAL ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Define What Does Contract Mean and What are Various Essentials of a Valid Contract.....3
2. Explain the Existing Court System of UK and Advise the Parties to Which Court to
Approach.....................................................................................................................................5
3. Advise Hilary as to Whether Binding Contracts Exist Between Herself and Each of the
Following People: Eleanor, Amy and Olivia..............................................................................5
4. Explain the Various Remedies Available to the Parties Under Contract Law........................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The legislature has enacted various laws which governs a business and ensure that all the
activities related to the business must act in a smooth and efficient manner. The Law of
Contract is one such law which governs the business transactions. It determines the various
contractual obligations of the parties who are doing contract. In a business organisation every act
is done by making a contract. This contract can be either oral or written. The parties with whom
the business organisation enter into the contractual relationship can be its suppliers or its
customers. If any of the party breaches the contract, the party who has suffered the loss due to
that breach becomes entitled to get the compensation. While awarding the compensation the
court must see whether there was a valid contract existing between the contracting parties and for
determining this it will be seen that all the essentials of a legally binding contract is present in
that agreement or not. In this essay the focus will be mainly upon the essentials of a valid
contract and what all remedies are available to the contracting parties. Also certain facts will be
examined to find out whether there exists a legally binding contract or not.
MAIN BODY
1. Define What Does Contract Mean and What are Various Essentials of a Valid Contract
A contract is nothing but just an agreement which is Legally Binding upon all the
contracting parties and its breach will raise a Cause of Action through which the party who has
incurred the loss due to such breach will be entitled to claim the compensation. A person cannot
contract with himself, which means that while entering into a contract there must be 2 or more
persons between whom the contract will be made. The first necessary step which is also one of
the essential of a valid contract is Offer(Campbell, Mulcahy and Wheeler, 2017). The offer must
come from the side of offeror and not from any other person. While determining the validity of
the contract it should be taken into consideration whether the given offer amounts to an offer or
it is an “Invitation to Offer”. In the cases of Invitation to offer the person who saw such
invitation will make the offer. The court has given various judgements distinguishing between an
offer and invitation to offer. In the celebrated judgement of Fisher vs Bell the honourable court
stated that all the items which are displayed in a shop or a showroom will be considered as
invitation to offer. The person who wants to purchase those displayed items would be making the
offer to shopkeeper and now its the turn of the shopkeeper to whether accept the offer or not. The