Analyzing Different Aspects Of Contract And Negligence
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Various Aspects Of Contract

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  • Level: High school
  • Pages: 14 / Words 3505
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Introduction

A contract is a written or spoken agreement that is formulated with an aim of forming a legal relationship between parties (Meaning of Contract, 2016). For any business relationship, a contract plays a significant role. This is because, by formulating an agreement, parties can save themselves from the losses that may happen when any party to the contract fails to perform what they have decided through mutual agreement. The present report is based on different types of case scenarios. Thus, in this context, the report will depict the importance of different essential elements of the contract. Furthermore, the report will also showcase detailed explanations regarding different concepts that are associated with the contract.

Task 1

1.1 Explaining The Importance Of Essential Elements Of Contract

Contract is a legally binding between parties. However, with an aim to formulate a valid contract, respective parties will have to satisfy different essential elements of a contract. Thus, a detailed explanation of the same is depicted below:

Offer And Acceptance

It is the first element of a contract or it can also be said that it is the initiation phase of a contract. Here, any contract starts with the offer which is being given by one party to another. Here, the offer that the party gives must be clear and definite (Akintoye, Renukappa, and Lal, 2012). This is because, if the given thing is found absent, then in this situation, the offer given by the party will not be considered to be appropriate. However, there are certain circumstances when the offer will lapse. These circumstances could be a time when parties to the contract will have to accept the contract or it will expire. In addition to this, an offer being made by one party needs to be accepted by the other party. This is because; if this does not happen then in this situation, a valid contract cannot be formed.

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Intention To Get Entry Into Legal Relationship

This second element of a valid contract depicts that parties must have the intention to enter into a contractual relationship. Thus, the given intention of the party depicts that they are ready to fulfill all the terms and conditions of the

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