elements required for formation a valid contract 3 1. Agreement 3 1.1 Offer 3 1.2 Acceptance 4 2. Consideration 5 2.1 Adequacy and Sufficiency of consideration 5 2.2 Privity of contract 5 3. Intention to create legal relations 6 3.1 Domestic arrangement 6 3.2 Commercial agreement 6 3.3 Capacity 7 PART 2 – The impact of different types of contract 8 1. Verbal contract 8 2. Written contract 8 The parol evidence rule 8 3. Implied contract 9 PART 3 – The effect and meaning
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KwikCo, is looking for a courier service which they can use exclusively to deliver parcels and documents to their clients. The advertisement calls for expressions of interest, stating that "those parties wishing to be considered for the courier contract with KwikCo should submit an application in writing to be received in KwikCo's office by 5pm on Friday, 25 April, 2008." On Monday, 21 April 2008, A sends a letter to KwikCo giving information about her company and its experience as a courier
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Chapter 10Homework 1. This would indeed be a contract called an implied-in-fact contract. This is a contract that is implied from the conduct of the parties. Unlike other contracts, the contract was created through the conduct of the parties, not through words. This is what Miller and McCleskey have done. The parties both agreed through their conduct that it was alright for Miller to take the candy bar, which he will pay at a later date. 2. Nursing Services will probably be able to recover
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following essay deals with a hypothetical case in contract law, more specifically an offer and its acceptance. Its main purpose is to discuss and apply the principles in law, relevant to the topic, as well as advice the parties on their position and legal obligations. In the following case, the offer is being made by an advertisement in a local newspaper. The law states that advertisements in general are merely an invitation to treat and not an offer, the precedent being the Partridge v Crittenden
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whether Mr Robert’s revocation of offer by post is effective as against Mr James. Section 2(h) of the contract 1950 defines contract as an agreement enforceable by law. In order for an agreement to be enforceable by law, it must consist of six essential elements which are offer, acceptance, consideration, intention to create legal relation, capacity and certainty. Section 5(1) contract act: a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer
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For a contract to be valid it must have the following characteristics: 1. Offer and acceptance A contract is formed when an offer by one party is accepted by the other party. An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because
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the offeree revert and accept to the original offer after they have changed the terms of the original offer and bounce it back for the offeror to accept. In order to determine whether an offeror can be legally bound after offeree changes the terms of the original offer and then revert back to original offer, we need to consider the rule of acceptance. According to s.7(a) of Contracts Act 1950, “In order to convert a proposal into a promise the acceptance must be absolute and unqualified.” In other
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OFFER & ACCEPTANCE According to section 2(h) which defines contract is an enforceable agreement. There are several conditions that have to be fulfilled for a contract to be valid which are offer, acceptance, consideration, intention to create legal relationship, capacity and free consent. Under section 2 (a) is offer. It stated that offer is an expression of willingness to enter into a contract as soon as it is accepted. Besides that, an offer is made to one person or the whole world. There are
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Contracts 613 MIDTERM EXAMINATION Contracts 613 Issue: Valid Contract Betty v. Art Formation For there to be a contract, there must be an offer, acceptance and consideration. Offer An offer the present outward manifestation of intent to be bound by contractual agreement requiring definite and certain terms and is communicated to the offeree. When Betty asked Art on what terms he would build a barn on her property was a present outward manifestation. Here Art responded that he had never
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A contract is a legally binding agreement, be it written or unwritten. In order for a contract to be legally binding, an agreement must satisfy certain requirements which are offer and acceptance, intention to create legal relations, certainty as to the terms of the agreement, capacity to contract, and consideration provided by each of the parties. The rules on offer and acceptance are usually used to pinpoint when a series of negotiations has passed that point, in order to decide whether the parties
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