CONTRACT LAW

Contract Law

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Contract Law

Within law, a contract aims to provide a legally binding agreement between two or more parties, mutually agreeing to the formal requirements provided within the article. The theoretically underpinnings of the contract as stated in the question are regarded as 'monumental in attaining the perspective that will allow for substantial understanding of the basis of contract law'. However, there may be at times situations where no agreement may be reached due to certain legal factors restricting a resolution, these barriers known as the vitiating elements of a contract. It has been often mistaken that even if the essentials of a contract are present, one or more vitiating elements can cause the agreement to become invalid, thus rendering it unenforceable. In a legal element of a contract, there are necessary to form binding contracts that are usually described in the following. These are an offer, an acceptance in strict compliance with the term of the offer, and legal purpose or objective. The example that is going to be use would be the steps to valid and enforceable real estate contract.

In an offer, it's a written or verbal statement by any party to express there intent to enter into a contract under certain terms. These can be negotiated, re-negotiated, or withdrawn at any time prior acceptance. Once the offer is accepted and the contract is signed then will be known as the considered party to the contract and you must perform as agreed on the contract that you signed.

Andrew Phang (2005) argues that the need to achieve a balance between fairness and certainty in contract law means that contracts may over the course of time become better constructed due to these vitiating factors. These elements; inequality, misinterpretation, illegality and mistakes, have the power to affect law and in most instances lead to contract invalidation. An important piece of statute law relating to contracts is The Contracts Review Act (NSW) 1980 which defines the basic outlines of a contract whilst highlighting scenarios were a contract may become void. In common law, when the offer and acceptance of a contract is affected by mistake, the contact becomes void and the defence is open to the three defined categories of operative mistakes; Non est Factum, unilateral mistakes and bilateral mistakes.

The analysis of a contractual law mostly takes place with respect to offer and acceptance. When it comes to an offer, one of the parties, which is the offeror, offer to the other party, which has the liberty to accept the offer or not. If the other part, which is the offeree, accepts the offer, then it creates a binding contract between the two parties . However, there are a number of considerations when analyzing the concept of a contract law. The primary or the significant concepts of the contract law are an invitation to treat, and invitation to offer. It is essential to determine the differences and distinctions between the two concepts before analyzing contract laws. The two concepts of contract law ...