Present Contractual Principals Which Make Up And Constitute A Valid Contract?

Decent Essays
Introduction The aim of this report is to present contractual principals which make up and constitute a valid contract. It will explain also the types of terms and conditions that must be included in the standard form of contract and evaluate their importance to the business presented in the case study. Principles which make up and constitute a valid contract Contracts determines a key part of SPC Ltd operations, and it is essential that all parties to a contract understand the terms included in a contract and the rights and responsibilities of the parties under that contract. According to Treitel (2013, p.2) “contract is an agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties”. It can be argued that the process of agreement begins with an offer which has been described by Richards (2013, p. 55) as “an expression of willingness to contract on certain terms made with the intention that a binding agreement will exist once the offer is accepted”. Furthermore, there are two types of an offer; unilateral and bilateral (Chen-Wishart, 2015). Legally binding offer must include clearly stated terms, intention to do business and communication of that intention which may be written, spoken or may be by the conduct (Adams, 2014). If an offer is not accepted it can be brought to an end by death, refusal and counter offer or
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