Contract Law
General Introduction
For parties to be bound by an agreement, it must first be determined if a prima facie valid and enforceable contract exists. A contract can be defined as an agreement containing promises made between two or more parties with the intention of creating certain legal rights and obligations and enforceable in a court of law [1].
For a legally binding contract to exist the following elements must be satisfied:
1. An offer must exist
2. The offer must be accepted
3. Consideration must pass between the parties
4. The parties must intend the agreement to be legally binding
5. The parties must have the legal capacity to enter into a contract
6. The contract cannot be for an illegal purpose.
This essay will explore aspects of contract law based on two scenarios advising the correct legal position.
Case One - Known Facts
Negotiations took place between two parties for the sale of a car from Boris (the seller) to Michael (the purchaser) with the intent to create legal relations. The application of contract law is required to determine the legal position and remedies involved.
Case One - Issues of the Law
The matters for legal consideration involved in case one include:
1) Did negotiations give rise to an offer and acceptance?
2) Was the revocation of the counter-offer by Michael effective?
3) Did consideration pass between the parties?
4) What remedies are available to Boris for breach of contract?
Case One - Application of the Law
Offer and Acceptance
For an agreement to be legally enforceable there must be an offer by the offeror to be bound by certain terms. This offer can be in writing, orally or by conduct and made to an individual, group or even to the world at large. This offer must be followed by an unqualified acceptance communicated by the offeree to the offeror.
The offeror must indicate an intention or a willingness to be bound by the offer,
For parties to be bound by an agreement, it must first be determined if a prima facie valid and enforceable contract exists. A contract can be defined as an agreement containing promises made between two or more parties with the intention of creating certain legal rights and obligations and enforceable in a court of law [1].
For a legally binding contract to exist the following elements must be satisfied:
1. An offer must exist
2. The offer must be accepted
3. Consideration must pass between the parties
4. The parties must intend the agreement to be legally binding
5. The parties must have the legal capacity to enter into a contract
6. The contract cannot be for an illegal purpose.
This essay will explore aspects of contract law based on two scenarios advising the correct legal position.
Case One - Known Facts
Negotiations took place between two parties for the sale of a car from Boris (the seller) to Michael (the purchaser) with the intent to create legal relations. The application of contract law is required to determine the legal position and remedies involved.
Case One - Issues of the Law
The matters for legal consideration involved in case one include:
1) Did negotiations give rise to an offer and acceptance?
2) Was the revocation of the counter-offer by Michael effective?
3) Did consideration pass between the parties?
4) What remedies are available to Boris for breach of contract?
Case One - Application of the Law
Offer and Acceptance
For an agreement to be legally enforceable there must be an offer by the offeror to be bound by certain terms. This offer can be in writing, orally or by conduct and made to an individual, group or even to the world at large. This offer must be followed by an unqualified acceptance communicated by the offeree to the offeror.
The offeror must indicate an intention or a willingness to be bound by the offer,