4 Step Process to Contract Law

1681 Words Mar 31st, 2012 7 Pages
Question a)

Step One

The principle of law is that for a valid contract to be formed there must be an agreement reached by both parties.

Step Two

There are three main elements for the formation of a legally binding contract, intention, agreement and consideration. The requirement that requires discussion here is the existence of an agreement by the parties to enter into a legally binding contract.

An agreement means a consensus on at least those essential terms needed for a workable transaction. The process of reaching an agreement is generally analysed as involving an offer and acceptance. Where the offer is a clear indication of the terms upon which a person is prepared to be bound, and an acceptance is assenting to, agreeing, or
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Question b)

Step One

The area of law relevant to this question is the review of a contents of a contract enforced between two parties.

Step Two

There are particulars to a contract which structure its existence. This includes the importance of terms within the contract, the freedom of contract, statements that do not become part of contract, and terms of contract.

Within a contract consideration must be made to the creation of the contract. The terms of the contract define the obligations of the parties. It is by analysing the terms that you can find out what has to be done to discharge those obligations. For example in Cehave NV v Bremer Handelsgesellschaft mbH [1976] QB 44; [1975] 3 All ER 739, the buyer Cehave did not want to accept the delivered goods because they were not in ‘good condition’ although they were in satisfactory condition to perform their purpose which was to be used as animal feed.

Freedom of contract is the freedom of individuals to bargain among themselves the terms of their own contracts, without external interference. People can negotiate effectively in their own interest and both parties negotiate from a position…

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