A Contract Is An Agreement Between Two Or More Persons, And Is Voluntary Within Scots Law

2030 WordsNov 21, 20169 Pages
A contract is an agreement between two or more persons, and is voluntary within Scots Law. It is one of two types of obligations, the other, a Promise. To form a contract, all parties entering must have the capacity – meaning they must be sane under the terms stated within the law. Those entering must be fully aware of what they are undertaking, having a sound understanding of the contracts terms. A contract has two principles that must take place for it to be finalized – an offer and an acceptance. One of the parties makes the offer to the other to enter a legally binding contract under offerors terms. The offeree (party receiving the offer) must agree to the stated terms for a contract to be formed, if they do not and attempt to change any terms then no contract is formed. If both elements do not take place, then under the law no contract has been formed. Multiple offers with different terms can be made before any acceptance is given, most likely because the parties are trying to come to an agreement of the contractual terms. For a contract to be formed, there must be consensus in Idem, Latin for ‘a meeting of the minds’ – all important elements of the contract must be met during this. All parties must be aware of the same things and to carry out their side of the contract. The parties must fully understand that by entering the contract they agree to being bound by the terms of the contract. An objective test would be used by a court to determine if there has been a

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