Law Assignment
INTRODUCTION
A contract may be defined as an agreement between two or more parties that is intended to be legally binding. The first mandatory requisite of any contract is an agreement (consisting of an offer and acceptance). At least two parties are required; one of them, the offeror, makes an offer which the other, the offeree, accepts.1
A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock:
"A promise or set of promises which the law will enforce".
The agreement will create rights and obligations that may be enforced in the courts. The normal procedure of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default.2
Contracts may be divided into two broad classes:
1. Contracts by deed
2. Simple contracts
The essential elements of a contract are:
Agreement
Consideration
Intention to create legal relations
Capacity
Consent
Legality
Therefore, a contract which possesses all these requirements is said to be legitimate. The absence of an essential element will render the contract void, voidable or unenforceable
In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffers a detriment. This benefit or detriment is referred to as consideration.
Lush J. in the case of Currie v Misa referred to consideration as consisting of a detriment to the promisee or a benefit to the promisor:
"Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other."3
Rules Governing Consideration4
1. The consideration must not be past.
2. The consideration must be sufficient but need not be adequate.
3. The consideration must move from the promisee.
4. An existing public duty will not
A contract may be defined as an agreement between two or more parties that is intended to be legally binding. The first mandatory requisite of any contract is an agreement (consisting of an offer and acceptance). At least two parties are required; one of them, the offeror, makes an offer which the other, the offeree, accepts.1
A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock:
"A promise or set of promises which the law will enforce".
The agreement will create rights and obligations that may be enforced in the courts. The normal procedure of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default.2
Contracts may be divided into two broad classes:
1. Contracts by deed
2. Simple contracts
The essential elements of a contract are:
Agreement
Consideration
Intention to create legal relations
Capacity
Consent
Legality
Therefore, a contract which possesses all these requirements is said to be legitimate. The absence of an essential element will render the contract void, voidable or unenforceable
In contract law consideration is concerned with the bargain of the contract. A contract is based on an exchange of promises. Each party to a contract must be both a promisor and a promisee. They must each receive a benefit and each suffers a detriment. This benefit or detriment is referred to as consideration.
Lush J. in the case of Currie v Misa referred to consideration as consisting of a detriment to the promisee or a benefit to the promisor:
"Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other."3
Rules Governing Consideration4
1. The consideration must not be past.
2. The consideration must be sufficient but need not be adequate.
3. The consideration must move from the promisee.
4. An existing public duty will not
Bibliography: Turner Clive, Australian Mercantile Law (The Lawbook Company Limited, 7th ed, 1985) Central London Property Trust Ltd v High Trees House Ltd [1947] 1 KB 130 Combe v Combe [1951] 2 KB 215 Currie v Misa (1875) LR 10 Exch 153 Legione v Hateley (1983) 152 CLR 406 Stilk v Myrick, 1809 2 Camp 317 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 Contract Law, Studymode.com, Contract Law, 2012, <http://www.education.vic.gov.au/about/news/newsalerts/2009/nationalsafetylaws.htm>, viewed 8th June 2014 D Gamage, ‘Berkeley Law’, Commodification and Contract Formation: Placing the Consideration Doctrine on Stronger Foundation, 2006, available from http://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=2461&context=facpubs, viewed 1st July, 2014. Providing resources for studying law, contract consideration, E-lawresources.co.uk, < http://www.e-lawresources.co.uk/Consideration.php, viewed 25th June 2014.