Legal Aspects of Responsible Leadership: Contract Law Report

This report delves into the intricacies of UK contract law, addressing the requirements for a valid and legally binding agreement. It examines the essential elements of a contract, including offer, acceptance, and consideration, and explores how these components contribute to the formation of enforceable agreements. The report further investigates the concept of conditional contracts, analyzing their enforceability and the conditions that must be met for them to be legally binding. It also discusses the importance of intention to create legal relations, the role of consideration, and the impact of misrepresentation and mistake on contract validity. The report references key legal cases, such as Guthing vs. Lynn and Harvey vs. Facey, to illustrate the application of legal principles. The report also considers the legal capacity of parties entering into contracts and the consequences of unlawful contracts. Overall, the report provides a comprehensive overview of contract law principles relevant to business scenarios.

Running head: CONTRACT LAW
CONTRACT LAW
Name of the student
Name of the university
Author note

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Issue
The issue involved in the particular case is it is anticipated by Simon in the case that Kim
will obtain several job offers and is intense to obtain services of Kim so that he can made
planning of legal strategy with Kim and members of legal team. As the legal advisor of Simon he
need to know the requirements of the agreement that is binding under Contract Law of United
Kingdom. Another issue engaged is whether Simon is able to form conditional contract on
conditions of passing final exams.
Rule
The contract law in the country of United Kingdom is the arrangement in between two or
more than two individuals who are engaged as parties to the agreement. The contract is construed
to be legally enforceable if there is voluntary arrangement is arrived in between the two
distinctive parties to the agreement (Andrews 2015). For instance if the person went to
supermarket for purchasing groceries they agreed to legally binding agreement with the other
party to the agreement that is supermarket in exchange of consideration for drink and food. The
agreement which is binding under contract law of United Kingdom is the set of rules that is
applicable to the obligations and duties of the parties to the contract (Bankowski, MacCormick
and Marshall 2016). the contract law governs and regulates the connection, interpretation and
validity of arrangement in between two or more than two parties to the agreement whichcan be
companies, individuals, or other corporations relating to the transactions of goods, the necessities
relating to exchange or service of ownership or interest. The formulation of the contract in

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between the parties initiate with the offer which is made by one party to other . Thus for example
the exchange of services or goods or offer inreturn of services or making promise for future
payment of consideration or somewhat in interchange of service. It is regarded as expression for
desirability to accept standings in between the parties to agreement (McEldowney 2016). The
offer permits the another party to agree the terms of offer that provide the base for formation of
formal arrangement or the other respective parties can decline the conditions set forth in offer
and can make counter offer (Leyland, 2016). In the case of Guthing vs. Lynn, (1831) 2 B&AD
231 it is held that there should be clear words in agreement so the contracting parties can ne
undoubted about the contractual terms. The offer that is made is agreement by one party to
another should be communicate to other party. The contract which is legally enforceable by law
require the following requisites
1. There is formation of agreement
2. There must be intention to form legal relationship that is the intention to create
relationship that is legally binding. In the case study of Buckpitt vs. Oates [1968] 1 All
ER 1145 it is apprehended that social domestic not intended to formulate legal
relationship.
3. There must be presence of consideration
The contract typically come in practice when there occur approval of offer by other party in
addition to that the consideration that is made in form of money has handed from one party to the
agreement to other (Mason and Escott 2018). In the situation of contract that is conditional the
same is enforceable in law when the condition is agreed or fulfilled otherwise. The approval of
offer may be communicated either by words or by activity. There is occurrence of acceptance in

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contract when the words made by the offeree or the conduct made inference as to approval of the
terms of offer by the offeree which is invited by offeror (Hartkamp 2015). In the case of Powell
vs. Lee (1908) 99 LT 284 it was determined that the acceptance of offer must be communicated
by the offerree to the offeror.he contract for being legally binding necessitate certainty relating to
the terms set forth in the agreement. It must be undoubtedly seeming to the respective parties
regarding the contractual terms. Furthermore if the primary terms is not agreed in between the
respective parties then the arrangement is not amounting to contract under the law of United
Kingdom (Best et al. 2015). In addition to this another necessity is the presence of consensus ad
idem that indicate the agreement in between the parties on alike contractual terms. Nevertheless
if there is absent of consensus as idem in the formation of agreement then there is no formation
of binding contract as interpret by court. The court has no obligation for creation of contractual
terms and therefore execute contract on respective parties.
The court in certain circumstances infer or implicate contractual terms especially in situations
whereby the respective parties relied actively on arrangement by the conduct of liability as set
forth in contractual terms. Nevertheless the court approach is to implicate contractual terms for
example it is required for efficacy in business.
The acceptance in agreement in order to be binding there must be communication made by
one party to another, there must be precise matching of acceptance with terms communicated
through offer and there must be certainty of agreement terms.in the case of Bloom vs. American
Swiss Watch Co. [1951] App D 100 it is held that evidence gave by Bloom to authorities led to
detention of thieves of Jewel. It is identify that the defendant advertise incentive for data but
denied payment. In the case of Branco vs. Corbarro [1947] 2 All ER 101 it was held that the
acceptance made in binding agreement should be firm. It is state by the legislation that

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individuals who are entering into binding contract should have capability to go into the contract,
or else it will be regarded as voidable. The adult have full capability of entering into contract and
made them enforceable in law. It is set forth by the law of United Kingdom that the individual
who do not possess legal capabilities to enter into contract especially facilitate legal safeguards
to minor or the individuals who are under mental disability.
In the case of Doyle vs. White City Stadium 1935, there was formation of arrangement for
training boxer. There was no payment of money however there was enforceability of contract as
it is regarded as contract was considered as advantageous due to the training provided. In another
case of Clements vs. London & NW Rail Co, 1894 there was removal of certain benefits that is
followed by employment contract however the contract was regarded as advantageous and was
endorsed. The contract is regarded as unlawful it cannot be held to be enforceable by the tribunal
or court. If there is existence of contract for purpose that is regarded as unlawful is void in
addition to that is not enforceable by tribunal or court. Thus the contract exist for the supply of
illegal drugs or to attain criminal or civil wrongs will be held to be unenforceable and illegal.
The assets which is transported under the illegal terms of the contract cannot be recovered
normally. Misrepresentation or mistake are the two factors that can create contract voidable. The
contract which is regarded as void cannot be enforceable by legislation. Thus there must be
formation of agreement that is offer made by one party and acceptance by other. The offer
indicates the desirability of entering into arrangement that is subjected to terms or conditions. It
can be created to groups of individuals, specific persons or world. There can be withdrawal of
offer at any period subject to that there must be communication of withdrawal of offer to
offerree. The communication of withdrawal of offer can be made by third party who is reliable in
place of offeror. In the case of Jones vs. Daniel [1894] 2 Ch 332 it is held that the acceptance in

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agreement in the contract should be final and unqualified. If the terms of the counter offer
intends to alter contractual terms then original offer that is made is considered to be cancelled.
The agreement made under common statute need not required to be in written form in order to be
enforceable. The informal arrangement that is made verbally is enforceable is it satisfy three
requirements of contract.
Thus the requisite elements which is required in case of creation of binding contract involves
consideration, offer, acceptance, mutual obligation of the parties, capacity and competency, the
written instrument. In the case scenario of Re Mcardle [1951] Ch 669 the consideration that is
made in contract should not be past consideration as the past consideration was construed to be
no considerational at all. The consideration must come from promise and in the case study of
Thomas vs. Thomas [1842] 2 QB 85 it was held that there must be sufficient consideration. In
Collins vs. Godefroy (1831) B & Ad 950, it was apprehended that the consideration in contract
must be something that promisee is authorized to comply.
The conditional contract is regarded as legally enforceable contract in United Kingdom for
the purchase or sale of goods that is apply in case of usual contract that is created on exchange
subject to fulfillment of condition precedent. The condition precedent is legal terminology that
indicates the event or condition that required to be fulfilled prior to consideration to specific
contract in effect or the responsibilities that is desired from both parties to the agreement
(Davies, Van der Heijden and Flynn 2017). Thus condition precedent is regarded as stipulation
that designate particular situation that should either happen or fulfilled by either one party to the
agreement for the purpose of ensuring advancement or implementation of contract (Hansen,
Rostiyanti and Purnomo 2017). the condition precedents within the ambit of commercial
contracts take the design of stipulations that instruct dealing with the diverse conducts. For

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instance in case of real estate the contract under the category of mortgage will contain condition
precedent to inspect to ascertain the value and condition of property should take place (Leyland
2016). The assessment should be approved by both the lender and the buyer prior to the
execution of mortgage contract. There can be waiver of condition precedent under certain
circumstances if it is not connect to matter which is in issue in contract (Du and Temouri 2015).
the conditional contract that is form in between the two parties to the agreement can be
advantageous for the purchaser and lender. It also permitted for entering in contract the
implementation of work, obtained planning permission, matter that is settled by one party with
condition that there will be selling or purchasing of the goods subject to the fulfillment of
conditions (Cesa-Bianchi, Thwaites and Vicondoa 2016). There will not be conclusion of
conditional contract unless the essentials that is entail in condition precedent is fulfilled.
Nevertheless in case of conclusion of contract that is conditional is rest on the fulfillment of
the stipulations that is the condition that is framed is conditional contract must be unambiguous
and clear. There must be clear understanding of interpretation of the conditions if it arrive to the
tribunal or court. In the case of Rentokil Initial 1927 Plc vs. Goodman Derrick LLP the tribunal
asked to make determination of the conflict that is evolve from conditional contract upon the
approval of planned approval. In the case of Harvey vs. Facey [1893] AC 552 held that the
differentiation in between supply and offer of information. The matter that is entail in contract
would be considered as unfair and unreasonable if it is implemented in planning permission.it is
decided by the court that sale contract required to be made in perspective of objective valuation
of rationality of planning approval. the wordings that is used in contract need to be interpret to
permit the matters to be considered unacceptable if there is unexpected or unusual in addition to
that may prevent realistically the proposed redevelopment from proceedings. The process of

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negotiation of the contract that is conditional is complicated. The framework of the contract
required to be workable in between the parties. The case of Rentokil made it ample clear that if
there is detail specification while framing conditions there exist less probability of the conflict
that evolve from contract interpretation. The laws relating to formation of binding contract
comes under the ambit of The Contract Act, 1990.
Analysis
Simon in the case required to comply with the formalities that is necessary for the
construction of binding contract under Contract Act, 1990. In case of infringement of contractual
terms the part who commit breach is entitle to pay damages to the other party. The remedies for
the infringement of contractual terms must be in the manner of damages, recession, specific
performance and injunction. Thus the contract in order to be binding should have offer,
acceptance, intention and consideration. In the case of Pharmaceutical Society vs. Boots Cash
Chemist [1953] 1 All ER 482 it was held by the appellate court that accuser was not in
infringement of Act as there is completion of contract on consideration under pharmacist
supervision. The terms of the contract must be either implied or expressed. The clauses of
exemption must be implemented in contract and should be unambiguous and also fulfill the
statutory criteria in pursuance to Unfair Contract Terms Act, 1977.
Simon expects that if Kim pass exam then she will get several job offers and Simon
secure the service of Kim so it comes within the scope of Conditional Contract. The conditions
that is enumerated is passing exam by Kim if the condition precedent is satisfied then only he
will secure the service of Kim. The condition contract is legally enforceable which incorporates
the conditions that is obliged to be satisfied by either parties to the agreement prior to the
conclusion on the contract. thus the conditional contract is arrangement that is legally only if the

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specific stipulations is satisfied. The condition contract is also designated by way of hypothetical
contract.
Conclusion
Thus it can be concluded from the discussions mentioned above that once there is
conclusion of contract it is significant to regulate the conduct of the parties. There are
mechanism for governance that is set forth in contract that regulates the connection in between
the contracting parties and also facilitate forums for monitoring the conduct and also deals with
development. Therefore it is decided that Simon is required to fulfill the contractual terms under
The Contract Law of United Kingdom. Furthermore Simon is eligible to make conditional
contract that is subject to passing of final her exams.

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References
Andrews, N., 2015. Contract law. Cambridge University Press.
Bankowski, Z., MacCormick, D.N. and Marshall, G., 2016. Precedent in the United Kingdom.
In Interpreting Precedents (pp. 315-354). Routledge.
Best, M., Cloyne, J., Ilzetzki, E. and Kleven, H.J., 2015. Interest rates, debt and intertemporal
allocation: evidence from notched mortgage contracts in the United Kingdom.
Bloom vs. American Swiss Watch Co. [1951] App D 100
Branco vs. Corbarro [1947] 2 All ER 101
Buckpitt vs. Oates [1968] 1 All ER 1145
Cesa-Bianchi, A., Thwaites, G. and Vicondoa, A., 2016. Monetary policy transmission in an
open economy: new data and evidence from the United Kingdom.
Collins vs. Godefroy (1831) B & Ad 950
Davies, E.M., Van der Heijden, B.I. and Flynn, M., 2017. Job satisfaction, retirement attitude
and intended retirement age: a conditional process analysis across workers’ level of household
income. Frontiers in psychology, 8, p.891.

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Du, J. and Temouri, Y., 2015. High-growth firms and productivity: evidence from the United
Kingdom. Small business economics, 44(1), pp.123-143.
Guthing vs. Lynn, (1831) 2 B&AD 231
Hansen, S., Rostiyanti, S.F. and Purnomo, 2017. Conditional Payments in the Indonesian
Construction Industry. Journal of Legal Affairs and Dispute Resolution in Engineering and
Construction, 9(3), p.06517001.
Hartkamp, A.S., 2015. Contract law in the Netherlands. Kluwer Law International BV.
Harvey vs. Facey [1893] AC 552
Leyland, P., 2016. The constitution of the United Kingdom: A contextual analysis. Bloomsbury
Publishing.
Leyland, P., 2016. The constitution of the United Kingdom: A contextual analysis. Bloomsbury
Publishing.
Mason, J. and Escott, H., 2018. Smart contracts in construction: views and perceptions of
stakeholders. In Proceedings of FIG Conference, Istanbul May 2018. FIG.
McEldowney, J., 2016. Delivering public services in the United Kingdom in a period of
austerity. In Public and social services in Europe (pp. 41-54). Palgrave Macmillan, London.
Pharmaceutical Society vs. Boots Cash Chemist [1953] 1 All ER 482
Powell vs. Lee (1908) 99 LT 284
Re Mcardle [1951] Ch 669
Thomas vs. Thomas [1842] 2 QB 85

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Unfair Contract Terms Act, 1977.