As a student and soon i'm going to enter the workforce, i need to understand the meaning of contract law.
Honestly, I don't quite understand about contract law as the chapter is quite long and too much facts to digest, but i'm still struggling to understand the fundamental principle of contract law ;)
Contract Law is defined as built upon agreement although not all agreements are automatically contracts.
There are 7 essential elements of contracts - free consent, offer and acceptance, intention to create legal relations, consideration, certainty, legality and legal capacity.
Honestly, I don't quite understand about contract law as the chapter is quite long and too much facts to digest, but i'm still struggling to understand the fundamental principle of contract law ;)
Contract Law is defined as built upon agreement although not all agreements are automatically contracts.
There are 7 essential elements of contracts - free consent, offer and acceptance, intention to create legal relations, consideration, certainty, legality and legal capacity.
- Free Consent : Consent means that the parties must have agreed upon the same sense. free consent is said to be missing due to existence of five factors; coercion, under influence, fraud, misappropriation or mistake.
- Offer and Acceptance : In every contract there must be an offer, complete enough to result in obligation, either by its express terms or by its implications, and an acceptance of that offer consisting in an agreement with it on every term.
- Intention to create legal relations : the intention to create legal relations is expressly stated by the contracting parties. In other situations, the law will readily imply the intention, because of the nature of the commercial dealings between the parties.
- Consideration : Under contract law, there is no contract if there is no consideration. Consideration does not necessarily have to be quantified or quantifiable in monetary terms. Any discernible detriment to one of the parties could be that party's consideration.
- Certainty : If the terms of an agreement are so vague or indefinite that it can't be ascertained with reasonable certainty what is the intention of the parties, there's no contract enforceable at law.
- Legality : Legality of purpose ensures that contracts involve legal promises, actions, and objections. A contract containing illegal acts or objects would violate this condition.
- Legal Capacity : The parties to a contract must have the legal capacity to enter in to that contract. Persons who are deemed incompetent due to physical or mental illness lack capacity to enter into contracts. Minors, which in most states refers to persons under the age of 18, may enter into contracts. However, any contract involving a minor is voidable.
Read more at: Contract Law http://law.jrank.org/pages/12504/Contract-Law.html#ixzz0hep9X2eq
