LEGAL ENFORCEMENT OF AN AGREEMENT.

LEGAL ENFORCEMENT
OF AN AGREEMENT
Topic 5

Whether the original
agreement between P & D is
legally enforceable.
Issue

Rule
Essential Elements of a Valid Contract
 Offer and Acceptance
 Consideration
 Consensus ad idem (Mutual consent)
 Intention of creating legal obligation
 Capacity to contract

OFFER AND ACCEPTANCEAn agreement is considered as a valid
agreement only when offer has been made by
one party and the same has been accepted by
the other party. After the acceptance of an
offer an agreement is constituted. Agreement
is considered as the primary criteria of the
making of a contract. The journey of a
contract usually begins with the agreement
and the roots of agreement can be found in
the offer and acceptance. In Smith v Hughes
(1871) LR 6 QB 597, the court set out the
classic statement regarding objective
interpretation of people’s conduct.