Content of a valid contract
Table of content:
1.1 The importance of the essential elements required for the formation of a valid contract-explain (P1.1)
A contract will be enforceable if it can satisfy some basic conditions. These type conditions are known as elements of essential for a valid contract. Every legal contract satisfies these conditions. Without satisfying these conditions a contract can’t be acceptable. That’s why for the formation of a legal contract satisfying the essential elements is very important. The importance of the essential elements to be a good agreement is described below:
Offer and acceptance: Basically offer is a proposal. When the proposal is accepted by the person to whom the proposal is made, then it turns into a contract. To be a contract, one party one party should offer and other party should accept. Where there is no acceptance, there is no contract.
For example, Mr S offers to trade his car to Mr Y in exchange of £45000. This is called proposal. If Mr Y accepts the offer, then there is a contract.
Intention to create legal obligation: There should be an intention to create a legal obligation between the parties. For example, a contract to visits a friend’s house is not a contract proposed to generate legal bond, so it is not a contract. But a contract to buy a car is a valid contract because there is purpose to generate legal obligation.
Lawful Consideration: Consideration can be defined as a promise to do something or not to do something. A contract of doing something for nothing can’t be an official agreement.
Free consent: An important issue to exit a valid contract is free consent. Free consent should have in both parties. A contract made by coercion, mistakes, undue influence and fraud will be void.
Certainty: An agreement should not be vague. It should be clear to all related parties.
Registration & Writing: A good contract should be in written form. Another important element of a valid contract is registration. Capacity of Parties:
1.1 The importance of the essential elements required for the formation of a valid contract-explain (P1.1)
A contract will be enforceable if it can satisfy some basic conditions. These type conditions are known as elements of essential for a valid contract. Every legal contract satisfies these conditions. Without satisfying these conditions a contract can’t be acceptable. That’s why for the formation of a legal contract satisfying the essential elements is very important. The importance of the essential elements to be a good agreement is described below:
Offer and acceptance: Basically offer is a proposal. When the proposal is accepted by the person to whom the proposal is made, then it turns into a contract. To be a contract, one party one party should offer and other party should accept. Where there is no acceptance, there is no contract.
For example, Mr S offers to trade his car to Mr Y in exchange of £45000. This is called proposal. If Mr Y accepts the offer, then there is a contract.
Intention to create legal obligation: There should be an intention to create a legal obligation between the parties. For example, a contract to visits a friend’s house is not a contract proposed to generate legal bond, so it is not a contract. But a contract to buy a car is a valid contract because there is purpose to generate legal obligation.
Lawful Consideration: Consideration can be defined as a promise to do something or not to do something. A contract of doing something for nothing can’t be an official agreement.
Free consent: An important issue to exit a valid contract is free consent. Free consent should have in both parties. A contract made by coercion, mistakes, undue influence and fraud will be void.
Certainty: An agreement should not be vague. It should be clear to all related parties.
Registration & Writing: A good contract should be in written form. Another important element of a valid contract is registration. Capacity of Parties: