COMMON LAW

Common Law



Common Law

Task One

1a The requirements for the creation of a contract and the application of its fundamental principles.

Ans1a. The topic of contract law is quite important for any business organization. There are certain conditions that must be satisfied in order to create a valid contract. The creation of an obligatory contract which the court must implement has various requirements to be met by the stakeholders. There are requirements which are in huge numbers that need to be satisfied before the formation of the agreement. The agreements produce certain rights and duties which needs to follow the legal requirements for the matter. The fundamental principles are considered as crucial factors elements of a legitimate contract which are

1. An intention to create a legal relationship

2. Offer

3. Acceptance

4. Consideration

5. Capacity to contract

6. Legality

Apart from these six key factors, there are several forms of contracts that should be in written form or, must be in peculiar form, for getting enforced in a given situation. However, under normal circumstances, contracts must have these six factors to make the contract strong and ensuing legal binding. These are the basic requirements for the formation of a valid contract (Alexander, 1998, 178). There are three requirements, which is the, core aspect for the topic. The three requirements that will be discussed in the light of the assignment are the offer, acceptance and consideration. All three requirements would be discussed in the following paragraphs:

1. Offer

This element of the contract deals with the commitments made to satisfy each other. The promise developed with the objective of building up legal relationship is typically implemented during the contract. However, in some of the discussions, an individual who commits a promise occasionally indulges in the process, until specific stipulation is added in the agreement for persuading both parties to agree on certain issues. As a result, such assurance is uncertain unless both parties build up any cogent agreement with each other to comply with the requirements of the case. The uncertain promise is normally subject to some conditions before the offer is eventually accepted by both parties. This development only occurs when the offer is considered valid acceptance by both parties and it is bounded because of the accord. There are two further conditions which become the major part of the second and the third factor of a valid contract. This is an important situation which must come under notice by both parties. The communication regarding the offer between the parties should be there before the creation of final accord. In this literature, two parties need to satisfy the first three principles of the allowable contract. The communication should take place between the parties regarding the contract. People generally have the awareness about this condition, and, they take steps to meet the requirements of the legal contract. Electronic or print media are one of the most important tools for communication between the two ...