Friday 11 December 2009
Elements of Contract (review for final exam)
A contract is a legally binding agreement between 2 or more persons for a particular purpose and it is enforcement by Law.(Contracts Act 1950)
<Further reading>
The essential elements of a contract are:
- 1. Agreement (Offer and Acceptance)
- An agreement is formed when one party accepts the offer of another and involves a "meeting of the minds".
- An agreement is formed when one party accepts the offer of another and involves a "meeting of the minds".
- 2. Consideration
- Both parties must have provided consideration, ie, each side must promise to give or do something for the other.
- Both parties must have provided consideration, ie, each side must promise to give or do something for the other.
- 3. Intention to create Legal Relations
- The parties must have intended their agreement to have legal consequences. The law will not concern itself with purely domestic or social agreements.
- The parties must have intended their agreement to have legal consequences. The law will not concern itself with purely domestic or social agreements.
- 4. Certainty
- In some cases, certain formalities (that is, writing) must be observed.
- In some cases, certain formalities (that is, writing) must be observed.
- 5. Capacity
- The parties must be legally capable of entering into a contract.
- The parties must be legally capable of entering into a contract.
- 6. Consent
- The agreement must have been entered into freely. Consent may be vitiated by undue influence.
- The agreement must have been entered into freely. Consent may be vitiated by undue influence.
- 7. Legallity
- The purpose of the agreement must not be illegal or contrary to public policy.
<Further reading>
Dude,thanks
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