............................................................1 1.1 what is a contract ？...................................................................1 1.2 The difference between an agreement and a contract ................1 1.3 The elements of a valid contract..........................................2 2.1 Offer...................................................................................................2 2.1.1 The definition of an offer .......................................................2 2.1.2 Two types of offer.................................................................2 2.1.3 Rules relating to offer ..........................................................3 2.1.4 An offer distinguished from an "invitation to treat".............3 2.2 Acceptance.......................................................................................3 2.2.1 The concept of acceptance ...................................................3 2.2.2 Rules relating to the acceptance............................................4 2.3 Intention to create legal relations........................................................4 2.3.1 what is called “ Intention to create legal relations”..................4 2.3.2 Two kinds of agreement.........................................................5 2.4...
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...UNIT – I ➢ Essential elements of a valid contract. ➢ Essentials of a valid offer. ➢ Essentials of valid consideration. ➢ Stranger to consideration. ➢ “No consideration- No contract” – explain and give exceptions. ➢ Discuss the provisions of law relating to contract by minor. ➢ Agreements Opposed To Public Policy. ➢ Free consent. ➢ Legality of object and consideration 1. ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. “All contracts are agreements but an agreement are not contracts” – Discuss? (OR) Essential elements of valid contract? Ans. Indian contract Act (I A), 1872, sec 2 defines a contract us “an agreement enforceable by law.” From the above definitation, the features of contract can be classified as 1. Agreement 2. Legal obligation. 1. Agreement: According to Sec2 (e), “Every promise or every set of promises forming consideration for each other” is called an Agreement. Therefore, AGREEMENT = OFFER + ACCEPTANCE CONTRACT =AGREEMENT+ENFORCEABILITY AT LAW FEATURES OF AN AGREEMENT: 1. Plurality of the parties 2. Consensus – ad-idem 3. Legal obligation 1. Plurality of the parties; for every agreement, there should be minimum two parties because one person alone cannot enter into an agreement with himself. 2. Consensus – ad-idem; the minds of both the parties must be in ad-idem, i.e., both...
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...legal issue is whether agreement of Sam and Matt is valid to form a legally enforceable contract. STEP 2: Explain the rule(s) of law with reference to relevant authority. To form a legally enforceable contract, agreement, intention and consideration are the three main elements. If one or more of the elements are not established then no contract is deemed to exist at law (Monterosso 2014). The elements of intention to be legally bound and of agreement are assumed to exist. The element that needs to be discussed here is whether a valid agreement exists between Sam and Matt. An agreement is only legally enforceable if the parties enter into a valid agreement where a valid offer is made and acceptance is received. An offer must be promissory, more than a mere expression of doing business and must be shown that the offeror intended to be bound on acceptance and willing to honor the terms of the offer if it is accepted by the offeree (Do and Duperouzel 2014). This is showed in the case of Harvey v Facey [1893] AC 552, where Harvey sent Facey a telegram stating: “Will you sell us Bumper Hall Pen? Telegraph lowest cash price-answer paid.” On the same day, Facey sent Harvey a reply by telegram stating: “Lowest price for Bumper Hall Pen £900.” Harvey sent Facey another telegram agreeing to purchase the property at the asking price. Facey refused to sell and Harvey sued. The court had to decide whether the statement made by Facey with the lowest price was an offer that capable to be...
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...be: A contract is a written or spoken agreement intended to be enforceable by law. It consists of 2 main parts: 1) Agreement 2) Its enforceability by Law 1) Agreement: Agreement = offer + acceptance In other words it is an accepted proposal 2) Enforceability by Law: An agreement to become a contract, it must give rise to a legal obligation or duty. An agreement in order to be a contract must give rise to a legal obligation and not a social obligation. Therefore only those agreements, which are enforceable in a court of law, are contracts. For an agreement to become a contract it should have the following characteristics: ➢ There must be 2 parties in the agreement. The offer must be definite and the acceptance of the offer must be absolute and unconditional. ➢ There must be an intention to create a legal relationship and not a domestic or social. ➢ The agreement is legally enforceable only when both parties give something and get something in return. This is known as “consideration”. It may not be only in cash or kind. It may be an act or abstinence or a promise to do or not to do something. ➢ The parties must be competent to enter into a valid contract. For eg. they should be sane, having sound maturity and should not have been disqualified from any law to which he is subject. ➢ Free consent. There is absence of free consent if the agreement is induced by coercion, under influence,...
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...Mailed on 23/12/13 BRIEF DISCUSSION ON CONTRACT ACT- 1872 According to Section 2 (h) of the Indian Contact Act, 1872, "A contract is an agreement enforceable by law”. A contract therefore, is an agreement the object of which is to create a legal obligation i.e., a duty enforceable by law. From the above definition, we find that a contract essentially consists of two elements: (1) An agreement and (2) Legal obligation i.e., a duty enforceable by law. As per section 2 (e) "Every promise and every set of promises, forming the consideration for each other, is an agreement." Thus it is clear from this definition that a 'promise' is an agreement. Section 2 (b) states that "When the person to whom the proposal is made signifies his assent thereto the proposal is said to be accepted. A proposal, when accepted, becomes a promise." An agreement, therefore, comes into existence only when one party makes a proposal or offers to the other party and that other party signifies his assent (i.e., gives his acceptance) thereto. In short, an agreement is the sum total of 'offer' and 'acceptance'. Example, A promises B to sell his horse for Rs. 10,000/-. The Law of Contract deals with such promises which create legal obligations. This excludes those promises made in common life which may be morally binding but creates no legal binding. Promises which do not give rise to legal obligations are not contracts. For example, if A promises B to attend the dinner and fails to attend then...
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...Business Agreement Task 1 P1: Explain different types of business agreements and the importance of key elements required for the formation of a valid contract. Business Agreement Business Agreement is the mutual understanding or assent of two or more than two legally competent parties. It is done or agreed upon on the relative duties and rights regarding current or future performance. An agreement typicallydocumentsthe give-and-take of anegotiated settlementand a contract specifies the minimum acceptablestandardofperformance. Types of Business Agreement There are various types of business agreements depending upon the nature, type and operations / activities of the business. These types can be categorized into following categories based on the above stated criteria. * General Business Agreements * Business Employment Agreements * Leases * Sales Agreements The General Business agreements contain Franchise Agreement, agreement with different agencies for advertising, insurance agreements, agreement on not taking legal actions, Settlement Agreement, Stock Purchase Agreement, business partnership agreement, privatization agreement etc. The different types of Business Employment Agreement are Employment Agreement, Consultancy agreement, Sales Representative Agreement, Employment Separation Agreement, Reciprocal Nondisclosure Agreement etc. Leases are of different kinds like Real Property Lease, Equipment Lease etc, and same is the case with Sales agreements, it also have...
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...employment begins and offer protection for both employers and employees, although contracts usually favor the employer. Employment contracts often contain key advantages for the employer, such as establishing an employee's minimum employment length. If were to sign an agreement to not work for a competitor during the two year period while employed under a contract with a company or 2 years after employment within the same metropolitan area this is only enforceable if all elements within the contract are met. In order for a contract to be enforceable all elements must be met; the main two elements are concepts of offer and acceptance, but even in these circumstances it is hard to enforce a non-compete agreement. We will look into the elements of employment contract, the UCC, and when a non-compete agreement is unenforceable. Contract A Contract is a voluntarily agreement entered by two or more parties in order to create a legal obligation and bind the persons that are entering in contract. A contract is only considered to be valid if all elements are met within the contract. So, within a contract there are essential elements which include; offer, acceptance, legal consideration, capacity, and purpose. A contract may be written or oral; the nature of the contract depends on the mutual consent of both parties. Written contracts generally have a longer statute of limitations and are an overall safer contract to enter into because of the ease of proof. Offer An offer is made when...
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...1. STEP 1 The issue of law concerns the element of agreement required for the formation of a legally enforceable contract between both parties. STEP 2 A legally enforceable contract is made up of three main requirements which are intention, agreement and consideration. All of these elements is necessary and if not established then the contract made would not be acknowledged by the law. The element of agreement to form a legally enforceable contract between both parties is discussed. An agreement is only legally enforceable if the parties intended that the agreement is made to be legally bound. Contracts are consensual transactions and both parties involved must be in complete harmony. Another element of agreement is it requires a like-mindedness...
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...contract. A contract is an agreement that can be enforceable by law. An agreement is an offer and its acceptance. An agreement which can be enforceable by law must have some essential elements. According to the constitution,All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. A contract must have the following elements. 1. Intention to create legal relationship. 2. Lawful object 3. Agreement not expressly declared void 4. Proper offer and it s acceptance 5. Free Consent 6. Capacity of parties to contract 7. Certainty of meaning. 8. Possibility of performance. 9. Lawful consideration 10. Legal formalities Intention to create legal relationship: The parties entering into a contract must have an intention to create a legal relationship. If there is no intention to create a legal relationship, that agreement cannot be treated as a valid contract. Generally there is no intention to create a legal relationship in social and domestic agreements. Invitation for lunch does not create a legal relationship. Certain agreements and obligation between father and daughter, mother and son and husband and wife does not create a legal relationship. An agreement wherein it is clearly mentioned that "This agreement is not intended to create formal or legal agreement and shall not be subject to legal...
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...of contents Table of Contents Acknowledgement. 3 Executive Summary 4 Table of contents 5 Table of Figures 5 Task 01 6 1.1 Essential Elements of a Contractual Document. 6 1.2 Different Types of Contracts in the Business Field 9 1.3 Contractual Terms 10 Task 02. 11 2.1 Postal Rule 11 Reference 12 Table of Figures Figure 1 Employment contract document 8 Task 01 1.1 Essential Elements of a Contractual Document. A valid contract has the following elements. All of are required for a valid contract. 1. A valid offer and acceptance 2. Consideration 3. Legal relationship 4. Capacity of parties to contract 5. Writing and Registration if so required by law An agreement must contain four essential elements to be regarded as a contract. If any one of them is missing, the agreement will not be legally binding. 1. Offer:- There must be a definite, clearly stated offer to do something. An offer will...
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...upheld by a court of law. An agreement may be altogether in composing, totally oral or somewhat composed and mostly oral. It just valids in the event that it meets its circumstances . For a consent to be legitimate it must fulfill the seven components. * offer: An agreement exist where an offer has been acknowledged and good consideration is provided.At law, offer may be depicted as the sign by one individual to another of his ability to go into an agreement with him on specific terms. * Acceptance: In the event that an offer has not been pull back or rejected it might be accepted . Acceptance of offer creats understanding. Rule of acceptance: * Only the offeree may accept the offer. * Acceptance must be final and unqualified. * Acceptance must be communicated to the offeror , unless one of the exceptions applies. * Intension: It is a term used to describe weather the court ought to assume that gatherings to an assention wish it to be enforceable at law. By the utilization of target test the court must translate the parties' intension. * Consideration: Coonsideration is the term utilized as a part of agreement for the association with contracts. it is guarantee make by one parties to another parties during contract. It can be money , objects , facilities etc. There are two types of aggrements: * Deeds ( which don’t require consideration) * Simple contract which require consideration. * Mutuality: Mutuality of agreement alludes to the proportional...
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...All contracts are agreement but all agreement are not contracts Answer; A contract is a legally binding agreement or relationship that exists between two or more parties to do or abstain from performing certain acts. A contract can also be defined as a legally binding exchange of promises between two or more parties that the law will enforce. For a contract to be formed an offer made must backed acceptance of which there must be consideration. Both parties involved must intend to create legal relation on a lawful matter which must be entered into freely and should be possible to perform. An agreement is a form of cross reference between different parties, which may be written, oral and lies upon the honor of the parties for its fulfillment rather than being in any way enforceable. All contracts are agreement because there must be mutual understanding between two parties for a contract to be formed. All parties should agree and adhere to the terms and conditions of an offer. The following cases illustrate ways in which all contracts are agreements; In the case of invitation to treat, where an invitation to treat is merely an invitation to make an offer. When a firm's offer is accepted it results into a contract provided other elements of contracts are accepted. Considering person A buying a radio on hire purchase from person B who deals with electronics and its appliances. Both parties must come to an agreement on payment of monthly installment within specified period...
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...13 MBA 16 – Business Law & Practice Module 01 - Law of Contract Coverage of: • Law of Contract: Definition, Essentials • Types of Contracts • Offer – Definition & Essentials • Acceptance - Definition & Essentials • Consideration – Definition & Essentials, Exceptions • Capacity of Parties • Free Consent • Quasi Contract • Legality of Object • Performance of Contract – Termination of Contract – Remedies for Breach of Contract Case Studies 1 The Indian Contract Act, 1872 The Indian Contract Act consists of the following two parts: General principals of the Law of Contracts – covered under section 1 to 75; the principles apply to all kinds of contracts irrespective of their nature Special kinds of contracts – covered under section 124 to 138 ; These special contracts are Indemnity & Guarantee (u/s124 to 147), Bailment & Pledge (u/s148 to 181) and Agency (u/s 182 to 238) in Chapter X – refer next Module 2) Section 76 to 123 – repealed by Sale of Goods Act, 1930 (refer Module 4) • • Section 239 to 266 – Chapter XI has been repealed by the Indian Partnership Act , 1932 ( not being covered separately; but major issues under different modules) The act does not affect any usage or custom of trade (u/s 1) – these prevail if reasonable & not illegal; an unique feature of this Act – most important branch of business law Some of the contracts not dealt with by the this Act are those related to Partnership, Sale of Goods (refer module 4), Negotiable...
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...Civil Justice Tutorial III i. What is proportionality and why is it so “new” in the Civil Procedure Rules? To extent does it different proportionality a. under the EHCR (Campbell case) to assess different right sets of rights b. after the Jackson reforms? Jackson is just in relation to costs – cases that are justly and in relation to proportional costs focus on the system as a whole Campbell v Mirror Group Newspaper Ltd (Costs) HL (2005) A model sues a newspaper for breach of confidence. The case go through HC and CA. On appeal to HL, Campbell solicitors and barristers work on a CFA basis (95% success fee for solicitors, 100% success fee for barristers. She wins case (3,5000 compensation awarded) + costs (1, 086, 295 inc. success fee of 279, 981) The claimant appealed against the denial of her claim that the defendant had infringed her right to respect for her private life. She was a model who had proclaimed publicly that she did not take drugs, but the defendant had published a story showing a picture of her leaving a drug addiction clinic, along with details of her addictions and the treament she had received. Held: The law of confidence is now better characterised as misuse of private information. “The need to be free to disseminate information regarding Miss Campbell’s drug addiction is of a lower order than the need for freedom to disseminate information on some other subjects such as political information. The degree of latitude reasonably...
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...contracts are an essential component to business livelihood. Although a contract is an agreement, not all agreements are valid contractual obligations. In order for any contract to be an official and legally binding agreement, there are essential requirements which must first be fulfilled. Because contracts are vital to the organization and its success, it is important that the organization has an inclusive understanding of the inner workings of business contract and law and sustaining ethicality within these agreements; this will help ensure that each and every business transaction is a smooth and successful endeavor from beginning to end. What is a contract, and what makes it valid? According to Essentials of Business Law, by Susan Rogers (2012), a contract is described as being “a legally enforceable agreement between two or more people.” Therefore, a contract emerges from the voluntary consent of two or more people with mutual accordance to enter into this agreement. Contracts are helpful to business, as these agreements are binding to both parties involved. In order for a contract to be a valid and binding agreement there are five fundamental yet essential elements that must be present, and these are: 1. The Offer, 2. The Acceptance, 3. Consideration, 4. Legality, last but not least, 5. Capacity, (S. Rogers 2012). In order for any contract to become a legally enforceable agreement (or in other words a valid contract) it must be one which has met all of these legal...
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