Requirements For The Formation Of A Valid Contract
In the task three, distinction between different types of contract terms was given, comparison between liability in negligence and liability in a contract were also looked at. Duress has been defined as a "threat of harm made to compel a person to do something against his or her will or judgment; esp. In certain circumstances, an implied contract may be created. There are two types of misrepresentation: An example would be when someone rents a car to get to a business meeting, but when that person arrives to pick up the car, it is not there.
Consideration- Something of value passes between the two parties e. If the contract is not required by law to be written, an oral contract is valid and therefore legally binding. Thomson Round Hall. Offer- made by offeror to the offeree , it is very important to distinguish this from invitation to treat which invites offers to be made 2. Once you and the printer agree on terms, there is an exchange of things of value consideration: For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation.
However, consideration must be given as part of entering the contract, not prior as in past consideration. A binding, legally enforceable contract can be in writing or oral. Fraud in inducement focuses on misrepresentation attempting to get the party to enter into the contract. In the early English case of Stilk v.
Other legal systems such as Islamic law, socialist legal systems, and customary law have their own variations. How Long an Offer Stays Open Unless an offer includes a stated expiration date, it remains open for a "reasonable" time.
To help clarify these borderline cases, the law has developed some rules defining when an agreement legally exists. The court may make an order of what is called "specific performance", requiring that the contract be performed. The relative knowledge of the parties may also be a factor, as in English case of Bissett v Wilkinson  where the court did not find misrepresentation when a seller said that farmland being sold would carry sheep if worked by one team; the buyer was considered sufficiently knowledgeable to accept or reject the seller's opinion.
Attempts at overarching understandings of the purpose and nature of contract as a phenomenon have been made, notably relational contract theory originally developed by U.
Although an invitation to treat cannot be accepted, it should not be ignored, for it may nevertheless affect the offer.
Requirements For The Formation Of A Valid Contract Bartleby
Not all terms are stated expressly and some terms carry less legal weight as they are peripheral to the objectives of the contract. These type conditions are known as elements of essential for a valid contract. What's reasonable, of course, is open to interpretation and will vary depending on the type of business and the particular fact situation.