The Law of Contract on Common Law

   

Added on  2020-04-01

8 Pages2531 Words44 Views
1Cover pageName of the studentStudent IDWord count
The Law of Contract on Common Law_1
2ContentsSolution 1....................................................................................................................................................3Solution 2....................................................................................................................................................3Solution 3....................................................................................................................................................4Solution 4....................................................................................................................................................5Issue........................................................................................................................................................5Law..........................................................................................................................................................5Application..............................................................................................................................................5Conclusion...............................................................................................................................................6Solution 6....................................................................................................................................................6Bibliography................................................................................................................................................8
The Law of Contract on Common Law_2
3Solution 1In Australia, the law of contract is based on common law. A contractual relationship exists when the parties formulate a contract amid themselves. Acontract is an outcome of mutual exchange of promises. When an offeror and an offereeexchange promises amid them with the intention to abide by the same legally, then, thereis formation of contract. [ CITATION Bar13 \l 1033 ]So, the main components of contract that are required are:i.An offer – A proposal sent by an offeror to an offeree with a view of approval is an offer.An offer is a resemblance of the intention of the offeror which is conveyed to anofferee[ CITATION Aus54 \l 1033 ]. The intention of the offeror signifies his wish to conductany act or inaction which he desires from the offeree to approve.An offer can either by written or oral but must be clear and unambiguous. The offeror may sendthe offer to people at large or one person but to whom so ever the offer is made, theofferee must be identified in law[ CITATION CAM06 \l 1033 ]. ii.An acceptance – An acceptance is the intention of the offeree which is communicatedback to an offeror. The communication is the approval of the offer that is sent to him[ CITATION Car929 \l 1033 ]. It is necessary that the acceptance must be the mirror image ofthe offer in order to be valid. If changes are brought in while accepting the offer then it isnot an offer in law. Rather, it is counter offer which cancels the original offer and it is thecounter offer which becomes the new offer in law[ CITATION Hyd404 \l 1033 ].iii.Consideration – A consideration is value for promises which is moved from one party toanother. It is a value which supports the promises and makes such promises enforceablein law. Consideration can be anything of value and need not be sufficient inlaw[ CITATION Pla69 \l 1033 ]. iv.Legal intention – The intention of the offeror and the offeree when making the offer andthe acceptance must be such which portrays legal intention, that is, the promises must bemade by the parties with consent that in case of dispute they are willing to go to the courtof law. Legal intention is presumed to be present in commercial contract and absent insocial contract but this presumption is rebuttable in law[ CITATION Erm02 \l 1033 ]. v.Capacity – The offeror and the offeree must be persons of capacity, that is, they must bementally sound, should not be minor and are not barred by law. [ CITATION Lat15 \l 1033 ]When all these five components are comply with by the parties, then, there is a valid contractthat is established which has the enforceability in law. Solution 2A contract is the combination of five core elements, that is, offer, acceptance, intention, capacityand consideration. These five core elements are prime ingredients of any contractformation. With the help of these elements two types of contract can be formed.[ CITATION Gra14 \l 1033 ]When the contract is made with the help of words, then, such are oral contracts. When the offerormakes the offer verbally which is accepted by the offeree verbally and all other contractessential are present then it is an oral contract. When the offer and acceptance is
The Law of Contract on Common Law_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Contract Law and The Law of Negligence in Australia
|8
|2397
|129

Law of Contract: Assignment
|9
|2537
|50

Contract Law and The Law of Negligence in Australia
|8
|2597
|359

Ingredients of a Contract
|8
|2666
|84

Contract Law Case Study: Eddie and Elise, Jack Jones and Retirement Village
|10
|3523
|163

BLO1105 : Business Law - Victoria University
|12
|2995
|86