Identify And Describe:. 1)The Essential Elements Of A Contract.

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Identify and describe: 1) The essential elements of a contract A contract is a formal agreement which can be written or literal between two or more parties. Contract laws relate to every aspect of activity in a business. Legally, persons under the age of 18 cannot participate to an agreement of a contract. Adults who are uncappable to make their own decisions also cannot agree to a formal legal contract. Principles of the ‘Adults with Incapacity Act’ are put in place to protect people who lack the capacity to make decisions. In terms of agreeing to a contract, there must be 2 or more parties involved consisting of bilateral obligations. The purpose of a contract is the meeting of two minds with the intention to create legally binding …show more content…

Crucial that both parties fully understand the terms and conditions involved in the agreement. While undertaking a contract, there must be intention from all parties to create legal binding obligations. The offer is secured when the other party accepts the offers made both parties then settle an agreement to create a legal binding contract. There are 3 types of contracts; • Verbal Contracts are literal agreements between two parties for example over the phone. • Written Contracts a mirror written copy of the terms and conditions needs to be provided to both parties for the contract to become valid. Written contracts are benedictional if a disagreement occurs between the parties and there is then a hardcopy to recover from. • Implied Contracts are not written down or verbal, therefore there is no written or verbal record of the agreement. Example “assume your neighbor hires you to mow his lawn every Friday for the entire summer. You mow your neighbor’s lawn for the first three weekends of the summer and get paid on Saturday morning each time. The fourth Friday you mow the lawn and when you arrive at your neighbor’s house on Saturday morning, your neighbor refuses to pay you. The law will infer that there is a contract between you and your neighbor, even though you never put anything in writing. This is an implied in-fact contract. Your neighbor is obligated to pay you because you performed your part of the bargain, there was an agreement based on both parties ' prior

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