Elements of a contract essay

This being the case, Muchimba Company Limited will be advised to take the delivery. To start with, the fact that the company did not object to any of the terms that Buchiclan Investments Limited had submitted on the offer, is a clear indication of implied acceptance.

A deed made by two or more parties is called an indenture. Some types of contracts must be in writing and must be made by deed to be effective. The law of contract has crucial significance in the legal management of transactions and obligations in any economic system.

This is not crucial for contract to be supported by the monetary consideration. The implied acceptance is when one party implies with the conduct, which he accepts an offer. Consideration is when party agrees to the terms of a contract.

This type of acceptance is the direct acceptance of an offer, without any modifications. However, there is an exception rule to this where documents under seal deeds do not require consideration for there to be a binding contract. The plaintiff Galauni Farms had offered to sale wheat to the defendant of about tones according to the initial documentation which was signed by the respondent.

It is vital for Muchimba Company Limited to appreciate the piece of advice based on the information. The parties need to agree in the same sense to the same thing and at the same time Wolf, The parties thereafter proceeded to act as if there were a binding contract until a dispute arose between them some time later.

A new buyer turned up and a contract was concluded, the defendant writing to the first buyer to withdraw the offer.

In this case a contract is made under some conditions. For this reason, a contract hardly comes into existence unless the parties have an intention to enter into a legal relationship and be bound by it legally.

For instance, a marriage binding promise to love somebody is not a consideration. Going by the question at hand, Buchiclan Investments Limited made an offer which was not rejected in its state apart from Muchimba Company Limited setting a condition which requested for confirmation of order by post to validate it.

Therefore, it appears to me that Muchimba Company Limited though setting a condition had implied to have agreed the terms in the offer communicated to them by Buchiclan as they did not object to the contents per se.

So, the basic components vital for creating any contract are frequently depicted as: There are UK writers just like me on hand, waiting to help you. The material alteration in a contract constitutes the counteroffer, which should be accepted by another party.

The court held that a contract existed because the parties had acted on the basis that a contract existed. Consideration is the fundamental part of any valid contract. About this resource This Law essay was submitted to us by a student in order to help you with your studies. Thus, if a party suggests car for sale and the other party discards this offer due to the high price, then a seller has right to oppose selling the car at the given price if the purchaser changes own mind and negotiates again Rao, In other words, the acceptance of the offer by the defendant could be inferred from his conduct.

Intention may be expressed by the parties or implied by their conduct. It is recognized as counteroffer and the primary offerer may or may not accept it. A deed can be unilateral that is, made by only one party and this is often called a deed poll.

Search our thousands of essays: An offer is ineffective until it is communicated by the offeror to the offeree. It can consist of right, profit, interest, or benefit, which ensues to one party, or otherwise, of some patience, loss or accountability, which is undertaken or acquired by another party.

The rule is an exception to the principle that the offeree must communicate acceptance to the offeror. However, consideration is only required to form a simple contract as the formal contract is wholly in writing, usually in the form of a deed, and does not require consideration.

Essential Elements of a Contract essay

A promise or term of a contract made by deed is called a covenant. Must be made in response to an offer like in R v Clarke and correspond with the offer.

The contract therefore started upon the offeror posting the letter though on the wrong address making it to arrive late. He also intimated that an agreement that lacks one or more of the elements listed above is not a valid contract.

The action by the offeror was enough to show commitment and intention to a legally binding contract. For instance, contract for unlawful distribution of drugs is not binding contract due to the reason for which it exists is not lawful Wolf, Cavendish Publishing Australia Pty Ltd.

Free Law essays

The offer becomes final once the side accepting an offer performs the obligations Rao, Essay: the elements of a contract – law problem question The conditions that determine the validity of the contract are complex and require considerable analysis to avoid breach of regulations that govern the law of contract.

Elements of a Contract Contracts are created every day for multiple different reasons. Examples of these contracts are contracts of marriage, contracts made with a wedding planner, and contracts made for a house lease.

Essential Elements of a Contract essay This paper is meant to describe the essential elements of a contract. So, the basic components vital for creating any contract are frequently depicted as. Elements of Contract Essay - A contract is a legally binding exchange of promises or agreement between parties that the law enforce.

It does not prescribe the rights and obligations of the parties. A contract does not need to be in writing to be enforceable. We will evaluate the offer, acceptance, and legal consideration.

In contract law once a legal acceptance is formed a contract gets developed in which case both parties cannot back out of the agreement after the contract has been signed. There are three rules that need to be followed when.

Essay on Elements of the Law of Contract - Elements of the Law of Contract "The requirement of consideration is an unnecessary complication in the formation of contracts." Consideration is probably regarded as one of the most controversial issues in the law of contract.

Elements of a contract essay
Rated 3/5 based on 79 review