...Essential Elements for Valid Contracts By: M.H.M.Rishardh MBA, BBA (Hons), FCMI (UK), MCIM (UK), Member of AMA (USA). MSLIM, MIM (SL) BCAS Qatar Learning Outcome: On successful completion of this topic you must be able to * Understand the essential elements of a valid contract in Business Context Contracts that meet all legal requirements are valid and enforceable, which means that either party can hold the other party responsible for his or her agreement. 1. Offer and Acceptance To have a valid contract, there must be a meeting of the minds (mutual assent), nominally evidenced by an offer and acceptance. An offer is made by an offeror and expresses that person's willingness to enter into a particular agreement. The offeree is the person to whom the offer is made. When the offer is accepted by the offeree, a contract is formed. Unless the offer specifies a particular period of time for acceptance, it is considered to be held open for acceptance for a reasonable time. A newspaper on online advertisement usually is not regarded as an offer but merely an invitation to negotiate. If an offer states a time for acceptance but fails to indicate "time is of the essence," the courts could allow acceptance after the period for acceptance expires. If “time is of the essence” is stated in the offer, acceptance must generally occur within the period specified or the offer is canceled automatically. If the offer fails to specify the form for acceptance (letter, telephone...
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...the law of contract, with a particular emphasis on the formation and operation of business contracts. You are encouraged to explore the content of these agreements and then develop skills relating to the practical application of business contracts, including offer, acceptance, intention, consideration and capacity. As a newly appointed human resources officer for an organisation called SimoSito (a software development company), your line manager has asked you to prepare a report with supportive examples of contacts for the organisation covering different types of contracts that the organisation can use or adopt. You will produce an individual written report for this assignment. The report should be approximately 2000 words and presented in formal report style. Assessment 1: ELEMENTS OF A VALID CONTRACT IN A BUSINESS CONTEXT Assessment Period: 6 weeks Learning Outcome: LO1 Understand the essential elements of a valid contract in a business context Assessment Criteria 1.1 explain the importance of the essential elements required for the formation of a valid contract 1.2 discuss the impact of different types of contract 1.3 analyse terms in contracts with reference to their meaning and effect TASK BRIEF Task 1: This task addresses LO1- 1.1/1.2/1.3 Produce a report that can be used to explore the types of business contracts, their terms, their meaning, their effects, and their impacts on a business. Support your report with examples of such contracts. There...
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...This is me. My name is Frank. I’m 19 year old and I’m a freshman of the university of Sunderland. I’d like to tell you somethings about me. I was born and grew up in a nuclear family in Quangnam city. There are 5 members in my family: my parents, my siblings and me. My father is 53 and he is a businessman. He is intelligent, hard-working and creative. He has set a good example for us to follow. My mother is also a businessman and she is 49. She has worked so hard to support my family. My brother and my sister are also working at a company in Danang. Honestly, my mother is a person who I love the most. She is really general and understand me. She always loves and takes good care of me. I really love her and my family. I studied at primary, secondary and high school nearly my hometown. As the almost students, I experienced a lot of compulsory subject like math, chemical, physical or English. When I studied at high school, I was really good at math so I usually got a high point in this subject. Honestly, in contrast, English was not my favourite subject. I hated it a lot of. Students in Vietnam learn English since secondary school. However, they are almost taught about grammar. It is very difficult. I couldn’t heard and speak anything. But everything has changed, since I studied at University of sunderland, my English skill has improved a lot of. I’ve studied with teacher who very good at English. We’ve been talking to English every time in class. Therefore, now I can speak and...
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...formation of a valid contract in the uk?Yahoo! Answers: Business & Finance. Four Essential Elements of a Contract www.smallbusiness.wa.gov.au/four-essential-ele... Traducerea acestei pagini An agreement must contain four essential ingredients to be regarded as a contract. ... For example: A quotation by sub-contractor to the main contractor and an offer ... Usually the consideration is the payment of money but it need not be; it can ... Elements of a Contract - Legal Dictionary - The Free Dictionary legal-dictionary.thefreedictionary.com/Element... Traducerea acestei pagini The courts must enforce a valid contract as it is made, unless there are grounds ... No legal benefit or detriment to any party was required, as the seal was a symbol ... consideration (see discussion below) for the promise made by the other. ... Ratification of a contract entails the same elements as formation of a new contract. main elements constituting a vaild contract - UK Essays www.ukessays.com › Essays › Law Traducerea acestei pagini For a valid contract, the basic elements that need to exist are: .... Legality, even where all the requirements of a valid contract discussed above the present, ... Contract - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Contract Traducerea acestei pagini Contract formation ... The elements of a contract are "offer" and "acceptance" by "competent ... In common law jurisdictions such as the United Kingdom and the United .... If the contract is not...
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... administrative law, equity etc. In business world, we use different kinds of law & law of contracts is one of the most widely used business law which is basically used to understand future business related The Aspects of Contracts & Negligence for Businessissues in more predictable manner by people engage in contracts. Contract is basically a promise that gives the official commitment that the law will be enforced.Judicial activism, which creates law to be less predictable & more flexible, & judicial restraint, which makes law more predictable & less flexible, is two important issues closely related to contracts that need to be defined properly. Task 1: P1- The essential element of valid contracts in a business context: A contract, to be valid in a business context, must have some essential elements which can be basically classified in four major categories- ð Agreement- In every contract, there must be an agreement between two parties where one party needs to make any kind of valid offer & the other party needs to accept the offer made. ð Consideration- To be valid, every contracts must have some consideration on the basis of which they engage in the contract. There must be exchange of something. The subject matter of the contract may vary from contract to contract. ð Intention to Create Legal Relationship- The subject matter & everything related to the contract must be legal & there should...
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...American Intercontinental University Contracts BUS 310-1101B-10 Instructor Dunn Latonya Vereeen ABSTRACT In the following paper will discuss the four essential elements of a valid contract. Also included is the objective theory of a contract and how it applies to the scenario that was given. Furthermore, an explanation will be given why the court in the scenario held that there was not a valid agreement. In further discussion explains if advertisements are considered offers. Last but not least, an explanation will be given on how the scenario case differs from a reward situation in which a unilateral contract is formed upon completion of the requested act. In order to know what a valid contract is one must know what a contract is. According to Legal Help Right Now (2008) a contract is legal binding agreement between two parties that states terms and conditions that will protect all parties of interest. A contract can be in writing, orally, inference or conduct, or a combination of all four (M R Curd Limited, 2004). Now that we are familiar with what a contract is, it is important to know what the four essential elements that forms the outline of a contract. These elements are an offer, acceptance, intention of consequences, and the consideration (Small Business, 2010).The first element of a contract is the offer. According to Smithies (2007) an offer is an expression of willingness to contract on a specific set of terms, made by the offeror with the intention that...
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...Southville Foreign University Unit 5 Aspects of Contracts and Negligence for Business 05-01 Kashka Lantion 24 August 2013 Mr. Jay G. Masangcay Table of Contents LO1: Understand the essential elements of a valid contract in a business context. 1 I. Explain the importance of the essential elements required for the formation of a valid contract 1 II. What is required for there to be considered to have a meeting of minds between the parties to a contract? 1 III. What are the requisites for a valid object of a contract? 2 IV. The Student should be able to (i) describe (ii) give at least one example each and (iii) discuss the impact of the following contract: 3 V. In the problem given above, was there already perfected service contract between ELCO and Mr. Rupertini Salvastre? Determine if all the requisites of a valid contract are present or absent. 5 LO2: Be able to apply the elements of a contract in a business situation 5 VI. In the scenario between Mr. Salvastre and ELCO, if Mr. Salvastre failed to make his design, is there a breach of contract? If there is none, explain why. If there is a breach, explain why? 5 VII. In the scenario between Mr. Shane Macky and ELCO, in case Mr. Macky made an express warranty that his architectural design is compliant with the Philippine standards, and that the building will not collapse due to poor architectural design within two (2) years from the date of completion, but after one (1) year from its complete...
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...Essential elements of a Valid Contract by V S Rama Rao on October 3, 2008 Agreements and contracts are two different things. It is important to know first what constitutes a contract and what constitutes an agreement. We will then study which agreements are contracts, their distinction different types of agreements and contracts. Essentials Elements of a Valid Contract: Different sections of the Indian Contract Act lay down the essential elements of the contract. They are as under: 1. Proposal and acceptance 2. Consideration – lawful consideration with a lawful object 3. Capacity of parties to contract – competent parties 4. Free consent 5. An agreement must not be expressly declared to be void. 6. Writing and Registration if so required by law 7. Legal relationship 8. Certainty 9. Possibility of performance 10. Enforceable by law. Proposal and Acceptance: When one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence he is said to make a proposal. The first step towards creating a contract is that one person shall signify or make a proposal or offer to the other, with a view to obtaining the acceptance of that another person to whom the offer is made. A proposal when accepted becomes a promise. When the person to whom the proposal is made signifies his assent thereof the proposal is said to be accepted. A proposal when accepted becomes a promise. Consideration:...
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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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...Essentials of a Contract As a senior manager in the procurement section of the Ministry, I would advise the following: there was a contract i.e. an agreement; an offer and its acceptance, an agreement that had essential elements. The first was that there was a proper offer and acceptance which were officially and unconditionally communicated. Further there was an intention to create a legal relationship by the two parties after fulfillment of the tender requirements, to construct a modern administration block. Thus the objective of the agreement was lawful i.e. within the parameters and boundaries of the laws that govern construction and the tendering process. There was consideration in the agreement thus making the objective of the agreement acceptable i.e. a consideration of something in return. The agreement for the works was for a legal project with wording of the agreement clear and not uncertain or vague i.e. certainty of meaning of what was required in relation to the work to be done. The agreement was done and perceived to be free of: i. Coercion ii. undue influence iii. Frau iv. Misrepresentation v. Mistake. The agreement therefore was made with free consent of both parties in their capacity to contract. Both parties were of sound mind and of age to enter into a valid agreement as per requirements spelt out in the tender process. In the agreement there was also the possibility of performance of the work advertised hence validating the contract at hand...
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...Contracts -- INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY -- 14 ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS Individual Assigment -Stephani Jayarathne- BTEC EDEXCEL HND DIPLOMA IN BUSINESS (MANAGEMENT & HUMAN RESOURCES) OFFERED BY INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS STEPHANIE JAYARATHNA BMK 31 ICBT KANDY CAMPUS SUBMITED TO: MRS KANCHANA LIYANAPATHIRANA 2013/07/21 Acknowledgement. It is with great pleasure I'm extending my sincere gratitude to my lecturer Mrs. Kanchana Liyanapathirana for the excellent support and guidance given to me in completing this assgiment successfully within the given period of time. I also would like to thank her for showing us some example that related to the questions of our assignment. The encouragement & cooperation given are always remarkable. Thank you! Executive Summary Table 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 ...
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...| |Unit Title: |Tutor’s Name: | |Aspects of Contract and |D.K Hashani shashiprabha | |Negligence for Business | | |Assignment Title & Number: |Learning Outcomes Covered: |Assessment Criteria Covered: | | |Outcome1: | | | |Understand the essential |See the following “Notes to | | |elements of a valid contract |Students” the assessment | | |in a business context |criteria covered in this | | |Outcome2: |assignment. | | |Be able to apply the elements of a contract in business | | | |situations...
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...Week 5 Final Paper Betty Poppins Bus 311 Instructor Brandy Krectzburg 7/01/13 Business Contracts: Protocol, Laws & Ethicality There are various kinds of contracts which arise within our business world today; 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...
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...MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPOR INDIVIDUAL ASSIGNMENT Identify the essential elements required for there to be a valid contract Course : Diploma in Business Administration (International Business-DBID2 1501A) Module : Introduction to Business Law Name : FIN : Lecture : M. Lukshumayeh Due date: 18th June 2015 Table of Contents: 0 Introduction.......................................................................................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...
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...TASK: ONE Identify the 4 essential elements required in the formation of a valid contract and for each one define and explain the legal principles established by case law. Use supporting case law/statue to illustrate your answer. Answer: A Contract is possible when there will be trade between two parties named buyer and seller for the sales and purchase of goods. When acceptance takes effect, a contact will usually be binding on both parties. Rules of offer and acceptance are typically used to determine whether the parties are obliged to fulfil their promises. Formation of a valid contact required some essential elements. Essentials Elements of a Valid Contract: 1. Proposal and acceptance 2. Consideration 3. Legal relationship 4. Enforceable by law Proposal and acceptance: The most important elements in a contract is an offer as without it no contract is possible and An offer would be not possible with the acceptance in order to create a valid contract. It is a definite promise to be bound on specific terms which must be legally valid or acceptable between two or more parties. After offering the goods it must be accepted by the related person. For example: Mr. hasan want to give an advertisement about hi products. He looks for the offer in an advertisement agency. He made the agreement with Agency to give a advertisement. The Agency will prepare a contract by making forms with terms and conditions and required documents which need to be filled up by Mr. hasan...
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