Contract Law

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Part 1 A contract is an agreement between two or more parties, which can be legally enforceable. A contract maybe written or oral, although an oral agreement can be difficult to prove in court. In order for a contract to exist it must include four elements, that being offer, acceptance, intention and consideration. (Sweeney & O’Reilly 2007 pg 160). A contract only exists when an offer has been accepted, an offer has the intention to be legally binding and the willingness to contract on certain conditions (Butt 2004 pg306). Accepting an offer means agreeing to the contract and in essences agreeing to the terms of that contract, an offer can’t be withdrawn or rejected and only the offeree is able to accept the offer, this acceptance must be…show more content…
Although given the presumption they are open to being rebutted by establishing that the facts show otherwise, the courts tend to look at the circumstances surrounding the agreement and the effect of the agreement on the parties but that does not apply in the case between Mary and James (Gillies & Niloufer 2009 pg 75). As with the case Balfour v Balfour [1919] 2 KB 571 the courts agreed since the agreement between the husband and wife was of a domestic nature it was presumed that the parties did not intend to contract, also because the wife had not provided consideration to the promise that was made to her by her husband and since there was no actual acceptance between them they have not contracted (Sweeney & O’Reilly 2007 pg 197). In Balfour v Balfour it was seen to the courts that there would be little effect on Mrs Balfour if her husband didn’t pay her a monthly allowance as it was of a small sum of money, it could be argued that this applies to James as there would be very minimal effect on him if he didn’t receive the toys at a lower cost. As stated in Jones v Padavatton [1969] 2 ALL ER 616 although an agreement was made between the mother and daughter for the daughter to live in the mothers house rent free, it was said that a contract doesn’t exist because the agreement wasn’t intended to be enforceable by the law, as it was of a

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