CONTRACT LAW

Contract Law



Contract Law

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. 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. 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.

The Elements of a Contract

Every ordinary contract has the following elements Offer, Acceptance, Consideration, Certainty of terms, Capacity to contract and Intention to create legal relations.Written contracts provide probative value than verbal contracts because they are easier to prove. However, verbal contracts remain popular because they represent the majority of everyday business dealings, which are typically negotiated between the contracting parties in a physically setting. There are some statutory requirements that certain contracts need to be in writing.

This is particularly the case for contracts that involve the sale of land. Explain the difference between a unilateral contract and a bilateral contract. Unilateral contracts involve an exchange of a promise by one party for the performance of an act by the other party. An example of a unilateral contract is an offer of a reward. The offer for the reward is accepted by the offered upon performance of the act, and it is at this time, once the act has been performed, that a binding contract comes into existence. A bilateral contract involves the mutual exchange of promises.

An Offer

An offer is a clear and unambiguous statement of the terms on which the offeror is willing to contract where the offered accepts such offer. An offer must be distinguished, from an invitation to ...