The Contract Should Be Legally Bound

1789 Words8 Pages
1. Introduction A contract is a valid or legally binding agreement between two parties. Contract is also said to be as a set of promise which the court and law will enforce it. Not all contract need to be presented in written form. A written contract is normally drawn up by listing all of the terms agreed between two parties . Furthermore, these two parties will need to sign and date the document at the end. In order to form a contract, there are six important elements required. This includes offer, acceptance, consideration, intention to be legally bound, capacity to contract, as well as legality of promises. A contract involves valuable consideration where sacrifice or contribution of valued items. Parties who is under 18 has no…show more content…
2.1 Acceptance must be clear and absolutely unconditional. Over the years, there are several rule of acceptance have evolved in the courts. An acceptance of offer should be unequivocal, unconditional and clear, and this implies the first rule of acceptance. In order to form a contract, there should not be any variation in either terms of the acceptance or the terms of offer, or either both. If there is any variation occur, the contract will eventually not be exist. Counter offer is a situation where the offeree tries to change terms in the offer given by offeror. Any counter-offer made by offeree such as adding or changing terms in the offer, shows that the offeree is not accepting the offer and the original offer is destroyed. Counter-offer behaviour is illustrated in the case of Hyde v Wrench . In the case of Hyde v Wrench, Hyde counter-offer to buy Wrench 's property for $950. The counter-offer was rejected by Wrench as he wants to sell it for $1000. Hyde then said he would purchase the property for $1000 but Wrench refused to sell for $1000 which he had previously offered the property to Hyde for that price. When Hyde sued Wrench to try to enforce the "contract ' to buy the property for $1000, the court rejected Hyde 's claim, holding that Hyde had rejected the offer of $1000 by making a
Open Document