- Understanding the Essential Elements of a Valid and Legally Binding Contract

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CONTENTS Introduction…………………………………………………………….. 3 Task 1…..…………………………………………………………….…. 4 Task 2 ……………………………………………………………………8 Task 3 …………………………………………………………………...9 Conclusion……………………………………………………………… 10 References………………………………………………………………. 11 INTRODUCTION In Assignment 1 in Common Law the basic notions relevant to business activities will be viewed. The purpose of this assignment is to apply basic theoretical knowledge of common law to day-to-day business practice. In this assignment particular cases will be considered from the legal standpoint. Legal aspect has always been important to any kind of business. Depending on the scale of operations we can see legal departments in large multinational corporations or small…show more content…
It has no legal effect and neither party can enforce the terms in a court of law. The reason is generally absence of one of the essential components of a valid contract. 5) Voidable Contract – a contract that is completely valid and enforceable, unless and until a party legally entitled to avoid the contract decides to do so by claiming some defect in the agreement. 6) Unenforceable Contract – an agreement that is legal in all respects but fails to meet some legal requirement. For instance, the law requires that some contracts, such as sales of land, be in writing. If they are not, the contracts are unenforceable, even though they are legal in all other respects. 7) Formal Contract – Is a written contract prepared with certain formalities. a) A check b) Real-estate contract 8) Informal Contract – Does not require any particular formalities. The parties are free to use any language they chose. It should however contain a few essential elements: the date of the contract, the names and addresses of the parties involved and the signature of the parties. 9) Express Contract – A contract in which the agreement is specifically stated. An example of an expressed contract is an insurance policy, in which all the terms of the contract are in writing. 10) Implied Contract – A contract in which the parties form a contract from their actions rather than from a specific oral or written agreement. 11) Quasi Contract (a contract
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