Contract Law Assignment : Contract Laws

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Contract Law Assignment 1 Scenario 1 The definition of a contract is a formal or legally binding agreement between two or more parties. This can be verbal, written or in standard format. A contract should be fully understood by all parties included and a signature may be required in some cases as evidence of understanding. Contract Types: There are three types of contracts which can be formed. These are verbal, written or standard form. A verbal contract is where two or more parties come to a spoken agreement and sign a verbal contract, this is usually commonly used between friends or private sellers. In Scenario 1, Phil calls Steve and verbally arranges to come view Steve’s car with a copy of the advert. When Phil inspects the car a verbal negotiation takes place to form the binding of the contract. Phil is offered the car at a counter offered price of £3,250 of which he accepts. A written contract is where two or more parties come to a printed documented agreement and all parties sign a written contract to make the contract binding. Copies of the signed contract are then kept for future reference of the terms the contract was agreed on. In Scenario 1, there was no written contract signed for the purchase of Steve’s car, Phil and Steve verbally accepted and offered the terms of the contract. A standard form contract is also known more commonly as a “take it or leave it” offer by the offeror. The contract is built on fixed terms and conditions which are entirely down to
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