LAW

Law of Contract

Introduction

The law of contract which we are going to analyze here is actually the enforcement of promises. Every contract is not enforced by court. For the enforcement of promises, or an agreement court observe some elements. After having a check on these elements, court will prove that agreement as a contract. The contract actually involves a process of certain elements. The process starts from an offer (Carver,2004). For the formation of the contract the offer must be accepted, unconditionally. There are certain more requirements for the offer and acceptance. After the communication of acceptance, law needs two other elements as well. One is consideration another is terms of the contract.Meaning of Contract

Contract is known as the promise or the set of promises which are enforced by the law. For a valid contract there should be two or more separate parties must be involved. The parties should have to be certain consensus on specific matters. They should be ready to create legal relations for their promises as they are contractual promises in contract. The promises must be supported by consideration (Gib, 2009). The contract doesn't have promises all the time which are bare but it also have some bargain in it. The requirement of two or more parties in a contract is the first essential thing for the contract that is why the arrangement between 2 departments or faculties of the same organization or company is not a contract generally because a person is not being allowed to make a contract with himself. But it may also depends upon the capacity if the different individuals or parties. The companies which have separate legal personalities involved can have contract where they act in as independent legal entities.

In general, four elements of a valid contract are:

There should be at least two parties for an agreement.

The terms and conditions of contract should be accepted by both parties.

The agreement should provide value and consideration to both parties.

A contract should consist of legal activities.

The Objective Theory of Contracts is the set of guidelines which describes that the contract is not an agreement in view of subjectivity of minds. Although a contract is a series of action gives the objective appearance of an agreement. This states that the presence of contract is determined but the legal importance of the external action of the party to supposed agreement.

When two or more parties agree to an agreement with an intention of creating an obligation that is legal, is known as a contract (White & Willock, 2003). It is a promise that is enforced legally by one party to another. The agreement binds the parties to be concerned about the bargain which is commercial and involves the hiring as well as sale of commodities.

Breach of Contract

Failure of a party, entered into an agreement, their obligations under the contract, or of intention not to fulfill contractual obligations. Pointing to the fact that in the future contract is broken is called the rejection of the contract (repudiation), or a warning ...