BUISNESS LAW

Business Law

Business Law

Introduction

We go through contracts almost every day and numerous times. Contract initiates even when you buy a ticket for a bus. For using weigh machine when you put a coin into machine, even by doing that you come to bind in contract. You go to a saloon and have a haircut; you actually initiated the contract (Andrew, 2008). All the above cases are routine tasks, in these scenarios; we cannot still think that we got bind in a contract. People who are involved in dealings, trade and manufacturing, the base of their business transactions depends upon legal contracts. The contract laws are different from other laws in every aspect. It does not put down countless specific rights and responsibilities that law will guard and implement.

Contract by definition

Those accords which are to impose at law are contracts. The contract is the regulation of those agreements which forms obligations, and in condition of a violation of a pledge by one party to the agreement, the other has a full right for legal action for the remedy of that particular act. So now we can say that any agreement which has legal importance is called contract.

Elements of contract

A valid agreement shall have four fundamental elements in order to be considered as a contract. If any of the element is omitted the contract would not be legally binding.

These elements are

Offer

Intention of legal consequences

Acceptance

Consideration

Offer

A contract should have a definite offer for starting anything. An offer does not include any sort of estimates, requirements for plan, terminologies of concern, or letters of objectives.

Acceptance

Every contract has an offer which clearly gives out the idea of acceptance of that offer without any condition. If any new proposal is suggested at the time of acceptance by other party this is known as counter offer (Benson, 2001). There is no significance for the one who makes the final offer. Important is the acceptance of agreement under the terms and conditions of the contract.

Intention of legal consequences

After the acceptance of the contract parties affirm that they have proposed to go into legally enforced agreement. Parties are to intend to build legal relation and should properly understand the legal consequences of the contract. It is prior recognized that both parties has intentions to create legal relation so contract does not in written expresses that parties intend legal consequences to follow (Bolton, 2005). Exception to that when parties mutually doesn't want to legally bound this should be mentioned in contract as well for it not to be legally enforceable.

Consideration

Consideration could be defined as what both party grant to the other as the settled price for their promises. Generally the consideration is the handing over of money but it can be something of same value consists of the promise not to do something, or to not utilize from using some right.

So it's obvious that people forming in contract are actually making law for personal benefit, extended as they do not disobey any authorized ban, they can ...