Project on Importance Of Contract - Effectively Important In Business
Added on 2020-02-05
13 Pages4763 Words59 Views
Aspects of Contracts1
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INTRODUCTION Contract is very important because it can be used in the legal system in the parties toensure that their rights are safe. contract is legal agreement these may or may not be in writtenformat. Contract are used personal but mainly it used in business solutions. the contract must bemade on the lawful object so that that can enforceable by law. In business contract are veryessential contract secure the rights of employee and employer and customer or buyers. A contractthat give a better understanding to the parties about their rights and also describe the duty of theparty and explain that in which circumstance contract will breach (Cuello-Garcia, 2013). In thisproject this will explain about the importance of the contract and how it is effectively importanttin business as well as in personal. Contract secure the rights of both the parties that is verynecessary to protect the right of every individual.TASK 11.1 A contract is a legal binding agreement between two or more competent parties.Contract are usually in written form but contract can be spoken or implied. There is certainelement in the contract which need to be fulfil for a valid contract these are: -offer a valid offer must be made by the party this is the first element and this is importantelement in the contract because the whole e contract is based upon a valid offer is notvalid at the time of performance the contract will be void. An offer can make to wholeword or may be to a specific person.Acceptance it occurs when the party accept the offer or a party answering on the offer.When a offer accepted by the parties then it make a contract. Acceptance of offer is thesecond element of the contract and the elements of ta valid contract must be in thecontract and if party not expressly accept the offer than the offer will not valid.Consideration in contract law consideration means a detriment to the person who madethe promise or a benefit conferred on the other party, both of which are measurable ineconomic terms (Berger, Lester, 2015). Example of the consideration are money or goodsand, also, services.Capacity of party’s person who come into a contract they must have the capacity to makethe contract as the contract act the person who is minor means less than 18-year-old or3
the person who is unsound mind and the bankrupt person in some contract they cannotmake contract and as well as there are some exception is also there in contract lawrelating to this.Agreement in contracts absolutely prohibited by statute will be void, whether the partiesknow of the illegality or not. To make a valid contract there must be a valid agreementwhere all the terms and conditions are mention according to the parties all the legal termsmust be mention in the contract that makes a contract valid.1.2There are so many kind of contract to take care of business or personally both. There is somecontract which are:unilateral and the bilateral contracts – in simple means unilateral contract means that toinvolve an action undertaken by one person or group alone. In unilateral contract onlyone person is allowing to make a promise or agreement (Book, Gruhn, Striemer, 2016).example of unilateral contract is insurance contract.Bilateral contract this is more common contract a bilateral contract is an agreement inwhich each of the parties to the contract makes a promise or promises to other party. Example ofthe bilateral contract is contract for sale of a home. The first difference is number of the partiesin bilateral contract there must e two or more parties and in unilateral contract only obligateaction on one part. Contracts under Seal (Deed) and simple contracts most contract made in writing will beknown as simple contract and the deeds are used because either the law require their useor there is some advantage in the deed. There is some difference in both the contract a simple contract can be entered into orally but a deed must be in writing. In simple contractparty have to give the consideration (Vagts, Koh ,Dodge, 2015). on the other hand, do notrequire consideration in order for them to be valid.Distinction between written contracts and verbal contracts an agreement made on aprinted document that must be signed by both the party. written contract is legallybinding of the parties.Verbal contract a agreement made with the spoken words or either their is no writing ormay be partially writing. And a verbal contract is also valid as well as written contract.4
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