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Contract Law Student's Name University Affiliation

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Added on  2020-02-23

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A binding contract is a legal agreement which is done verbally or in writing and the document is signed by the parties involved, two or more parties or entities sign the document. These include; offer, consideration, terms and conditions, acceptance, capacity, legal purpose and mutuality (Anson, et al. The first component is that there has to be goods or services that one party has to offer, For instance, SPC is a company in Australia which deals with canned fruits.

Contract Law Student's Name University Affiliation

   Added on 2020-02-23

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Running Head: CONTRACT LAW 1Contract LawStudent’s NameUniversity Affiliation
Contract Law Student's Name University Affiliation_1
CONTRACT LAW 2A contract is a binding agreement which is legal and enforceable by law (Board, 2011). The covenant is made between two or more entities. The main purpose of contracts is to enforce the rights and duties of the parties to fit with the agreement made (Carter, 2012). A contract can be formal or informal depending on how the parties want it to be. In case one party fail to follow the agreement the court can penalize that particular party. The duty of the court is to make sure that the agreement that the parties made is enforced. Some entities prefer written contracts while others prefer verbal. Only under specific conditions which state that the contract has to be writtenand signed. There are various types of contracts, among these are; contract under seal, implied, executed and executory, express, bilateral and unilateral, void and voidable contracts (Ba & Yang, 2016). This paper aim at handling particular questions regarding contract.List and explain briefly all the components required to demonstrate that a binding contractexists.A binding contract is a legal agreement which is done verbally or in writing and the document is signed by the parties involved, two or more parties or entities sign the document. For a binding contract to exist, there are several components which are the requirements to show that the binding contract exists. These include; offer, consideration, terms and conditions, acceptance, capacity, legal purpose and mutuality (Anson, et al. 2010).Offer is one of the components of a binding contract which has to be specific. This is the point where one party of the involved parties presents a good or service to the other party. One party promises to do something or to refrain from doing something to the other. The first component is that there has to be goods or services that one party has to offer, For instance, SPC is a company in Australia which deals with canned fruits. When they offer to supply Woolworths
Contract Law Student's Name University Affiliation_2
CONTRACT LAW 3with their products, SPC has to get to a point where they present to Woolworth what they have so that they decide if to go on with the contract or not.Consideration is another key component for a legal binding contract. There has to be something that is being exchanged to compensate for what was offered by the other party. For instance, when purchasing a car, the person offering the car specify the amount of money to be paid by the person interested to purchase the car. All the documents which are included in the carpurchase are agreed upon. The money paid will be the consideration (Anson, et al. 2010).Acceptance this is the next major component. When one party offers what they have, thenit's upon the other to decide whether to accept the offer or not. For example, before there is any agreement made on the type of fruits and quality Woolworth decides that they don’t want to continue with the contract, then the binding contract is not there until the two agrees on the termsof the bargain. Acceptance is a key component of a contract as the party being offered has to agree to terms and without that, no proceeding with the contracting process can go on.Capacity is legal requirements for parties to be allowed to take part in getting into contract. It is not everyone is in a position to enter into a contract legally. Some people are not allowed to, due to their conditions which can bring complications in the terms of the contract. For instance, minors, prisoners, bankrupts, people with mental impairment are among those not allowed to take part in contracts (DiMatteo, 2010). If someone falls in the categories the contact cannot be complete as they are not legally allowed to enter into a binding contract.Terms and conditions, this is a component of the binding contract. It is very important that the two parties set aside the terms and the conditions of the contract. This will govern their
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