Law of Contract: Genuine Consent

An agency relationship is fiduciary [good faith] in nature, and the actions and words of an agent exchanged with a third party legally bind the principal.

A contract is a legally obligatory promise or set of promises (Bagley, C. 2013). If this promise is broken, either party involved can be legally responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented offer and acceptance. The second states that the parties’ promises must be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal purpose (Bagley, C 2013).

Contracts are an important part of everyday life. They are an essential part of business. As a student of a business law class, I will discuss in this paper several aspects of contracts. This paper will give a definition of a contract and the essential elements necessary to form a valid contract. It will briefly discuss breach of contract and the difference between a material breach and a nonmaterial breach of contract. Examples of legal and equitable remedies available for breach of contracts will be highlighted. Also, legal excuses for nonperformance or other grounds for discharge of contracts will be addressed. Finally, three types of common contracts personally and professionally encountered will be mentioned.

u. P2) This implies that the seller who intends to enter a contract with a customer has a duty to disclose exactly what the customer is buying and what the terms of the sale are.

A contract is a promise between two or more parties that the law recognizes as binding by providing a remedy in the event of breach. In order for a promise to be enforceable it must be supported by consideration. Consideration can be defined as a bargained for exchange between the promisor and promisee; a promise can not be considered a contract without consideration. Common law states also require mutual assent to exist for a contract to be enforceable, this means that there must be an offer and an acceptance of said offer. For example, if a promise is made between two consenting people and one of those

There is no general definition of good faith under English contract law; it is generally a presumption that two parties will act honestly and fairly with one another. Unlike other systems of law, such as the French Civil Code, English contract law does not recognise the obligation of ‘good faith’. Instead there is more of a negative obligation not to tell lies rather than a positive obligation to tell the truth and act in good faith. However recent cases such as Yam Seng PTE Ltd v International Trade Corporation Limited have shown that the courts attitudes towards good faith have been developing and changing. Now it may be possible to imply a term of good faith in a contract. Therefore, where traditionally there has been a negative obligation not to tell lies, English contract law may be slowly moving towards an obligation of good faith.

The subject of consent requires the understanding of some of the legal and ethical issues surrounding the subject-

P1.1 explain the importance of the essential elements required for the formation of a valid contract

Contract.(n.d.).Legal Information Institue. In Cornell University Law Schoo.l Retrieved on November 10, 2013 from http://www.law.corne

Every contract is based on the concept of agreement. A contract is defined as a legal agreement consisting of exchange of promises which is recognized by law as giving rise to enforceable rights and obligations. The test of agreement is used to ensure whether or not there is a contract between the parties. Whereas the objective test ensures certainty, the same cannot be said about the subjective test of agreement. The objective test of agreement is when the court decides whether there is contract based on the outward appearance of what constitutes the contract. However the subjective test of agreement involves trying to establish whether there was a “meeting of minds” when the contract was made. That is, to try to figure out the mental state of mind of the parties involved during the time the contract was made.

The second requirement that needs to be fullled by the parties in the contract is the

The rule that courts will imply a term that was overlooked when the contract was being made, as it was so obvious

Section 12(2) of the act defines a condition as “a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.” Conditions is called an ‘express condition’ when a condition is expressed clearly in writing. A condition is a stipulation essential to the main purpose of the contract. It is very vital to the

Introduction: In this assignment I will go over a few legal terms in relation to contract law. I will also talk about a few precedents that help explain the law.

Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.