Media Report Analysis

The law of contract requires that there must also be evidence of an intention to create legal relations between the parties. However it is usually held that the decision is against the intention for an agreement domestic in nature to be legally binding, such as in the case of Cohen v Cohen where an agreement between family members that may be morally binding will not necessarily create a lawfully binding contract. However there are exceptions to this. When both parties show an intention to enter a legally binding arrangement and it would be unreasonable for one party to revoke their decision, the arrangement holds evidence of a possible contract.

University of Phoenix Material: Elements of a Contract Scenario Read the Elements of a Contract Scenario.

An agreement means a consensus on at least those essential terms needed for a workable transaction. The process of reaching an agreement is generally analysed as involving an offer and acceptance. Where the offer is a clear indication of the terms upon which a person is prepared to be bound, and an acceptance is assenting to, agreeing, or

a) Alan wants to know the five requirements in order to make a valid contract.

NOW, THEREFORE, in consideration of the mutual promises herein set forth and subject to the terms and conditions hereof, the parties agree as follows:

6. Assuming, arguendo, that this e-mail does constitute an agreement, what consideration supports this agreement?

Objective to build legal relationship: Not all agreements end up in binding contracts that are backed by the court of law. This is due to the fact that not all agreements are made under strict or formal

When it comes to commercial transaction, it is generally presumed that the contracting parties must have the intention to create a legal binding contract. This simply means that if the parties signed a contract for business related activities, then in case the other party fails to fulfill the contractual provision then the other party will be able to sue the other party.

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 Court of Appeal organised that Mrs Carlill was entitled to an incentive as the advert constituted a deal of a unilateral contract which she accepted by performing the conditions explained in the offer.

In the case that the email is accepted by the courts as a written agreement, the considerations supporting this agreement are:

The relevant rules are every simple contract must be supported by consideration, a promise to fulfil the terms of a contract is not always good consideration, and the rule that an agreement that is commercial in character can amount to a binding contract

“[A court is to] determine from the language of the agreement itself what a reasonable person in the position of the parties would have meant at the time it

“Agreement” means this Settlement and Release Agreement including its Definitions, Recitals, Undertakings, Representations and Warranties, and Terms and Conditions.

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.