Contract

9672 Words Sep 27th, 2014 39 Pages
1.0 Introduction
1.1 Basic Elements of Contract
In order to form a valid contract, each agreement must fulfill some important elements which are stated in Section 10 (1) of Contract Act 1950,
“All agreements are contract if they are made by the free consent of parties competent to contract, for a lawful object, and are not hereby expressly declared to be void.”
This section emphasizes the legal contract, the willingness and the parties capable of contracting and consideration which are all part of the basic elements of a contract. The following are the basics elements of the contract, a) Offer b) Acceptance c) Consideration d) Ability to Contract e) Intention to Create Legal Relations f) Certainty g) Free
…show more content…
In other words, the written contract is considered safe because there is evidence that can be referred if there is any problem arised.
2.0 Offer
The definition of an offer is an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed by virtue of Section 2 (a) and Section (b) of Contracts Act 1950.An agreement must happen between two or more parties when there is expression of willingness to enter into a contract and when it made with a legal intention that it shall be binding and legally enforceable by law. Section 2(c) of the Contract Act 1950 states that the person making the offer/proposal is the offeror, while the person accepting the offer/proposal is the offeree.

Section 2 (a) of the Contracts Act 1950 states,
“When one person signifies to another his willingness to door to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal”

Section 2(b) of the Contracts Act 1950 states,
“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted; a proposal, when accepted, becomes a promise”

Section 2(c) of the Contracts Act 1950 states,
“Person making the
Open Document