Introduction to Contract Law


A contract is a legal binding between two companies, concerns or parties that unites them in an understanding which is protected by jurisprudence. A contract between the parties can be created verbally, in authorship, by behavior or by all these agencies.

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And this contract becomes a valid contract if it has all the indispensable elements described as follows: It is of import to advert that contract is enforceable merely if all these elements are present in the contract.


I ) . Offer and credence:Offer is the get downing point of the contract. In order to make contract there must be a definite and chiseled offer by one party ( which will demo willingness of the offerer for an action ) and clear credence of the same by the other party. While doing an offer the offering party may stipulate the clip bound for cogency of the offer but even if it’snot specified, the offer will be valid for a logical clip period, until accepted or cancelled by the offering party.

The credence of the offer and that means full credence to what is being offered non partial ( partial credence is a counter-offer, which invalidates the contract ) , validates the offer to transform it into a contract.

Though all the elements must be present to make a contract, but offer and credence make the footing of the contract or it really lays the foundation of the legal understanding between the parties.

two ) . Purpose to make legal relationship:A contract requires that the parties aim/propose to come in into a lawfully binding understanding: i.e ; the parties come ining into the contract are willing to make legal dealingss and to the full understand that the understanding can be enforced by jurisprudence. If a contract has been signed between two parties, so one party will be able to action the other if it does non carry through the contractual commissariats.

three ) . Competence or ability to acquire into a contract:The jurisprudence does non give everyone the autonomy to come in into a contract ; instead certain specific makings are prescribed to accomplish the competence to acquire into a contract. To be lawfully competent to come in into contract one must be of the age of bulk ( should non be minor ) , holding sound head and has non been disqualified by any jurisprudence.

four ) . Free consent:Free consent is an indispensable component of a valid contract. It is congenital for any understanding that all the parties must hold to a common end. To make a valid contract, mere consent is non plenty, instead the consent must be free consent harmonizing to jurisprudence: A free consent is non caused by, coercion, undue influence, fraud, deceit and error.

V ) . Lawful Consideration:In order for a contract to be adhering it must be held up by valuable consideration. Consideration is what each party gives to the other as the in agreement monetary value for the other ‘s promises. Normally the consideration is the payment of money but it need non be ; it can be anything of value including the promise non to make something, or to forbear from exerting some right. Money, goods and services are the most common illustrations of consideration.

six ) . Lawful Object:The object of an understanding must be valid. Object is the intent or design of the contract. For illustration, if a edifice is hired to setup a concern, say private inn, the object of the contract is to run a private inn.

seven ) . Possibility of public presentation:If the understanding is about ac action which is lawfully, physically or practically impossible, so it can non be enforced by jurisprudence. So if an understanding fails to fulfill the legal demands, it can non turn into a contract, instead a null understanding.

eight ) . Not declared nothingness or illegal:The understanding though fulfilling all the conditions for a valid contract must non hold been expressly declared nothingness by any jurisprudence in force, in the state.

TASK-1 ( B )


1 ) . Unilateral Contract:In a one-sided contract the offering party makes a promise in return of specific act by the accepting party. For illustration a amount of money may be offered by the offerer in return of proviso of information by the other. If the offeree gives credence, so this act is adequate to acquire the parties into legal binding or contract. This contract is besides termed as a nonreversible contract wherein merely one party ( offerer ) assumes the duty under the contract.

2 ) . Bilateral Contract:In bilateral contracts both the parties make promises: the offerer promises to make an act in return of the promises of the acceptor. For illustration ; sale of goods or services. In bilateral contract, both the parties are bound to carry through the footings of the understanding.

3 ) . Speciality Contract:It is a formal contract, used in assorted concern minutess ; such as: rental of belongings and in partnership workss. In this, both the parties sign a written contract as a documental cogent evidence of the contract and both must retain the transcript of the contract.

4 ) . Standard Contract:When two companies enter into an understanding to make concern together, the understanding is sealed and documented to organize a standard contract. For illustration ; two insurance companies can acquire into an understanding ; they would be lawfully bound and can action each other in instance of breach of contract.

5 ) . Verbal Contract:It is based on verbal communicating of the catching parties but it is non documented or there is no formal grounds of the contract. So these contracts may give rise to differences and can non be challenged lawfully, in absence of grounds.

6 ) . Written Contract:In written contract, the footings are clearly expressed and agreed upon by the catching parties, at the clip of contract formation. The written contract is signed by both the parties as documental grounds for the legal binding.

7 ) . Implied Contracts:As the name implies, the footings in this contract may non be clearly expressed in words but it comprises of the duties originating from the understanding. For this contract there is an act or behavior of a party that lawfully binds them and tribunal implies the contract depending on the nature of the behavior. This may be implied in instance of reclamation of contracts between two undertaking parties.

8 ) . Simple Contract:The contracts must be kept in written signifier so that both the parties to the full understand the footings of the contract, which may give them a legal protection in instance of breach of the contract or amendss caused by the undertaking party. It might be in written or verbal signifier.

9 ) . Void Contract:It is non a valid contract at all. It has no legal consequence and it is non enforceable. An illustration is the 1 where the topic of the contract is illegal.

10 ) . Valid Contract:A valid contract contains all indispensable elements of a contract, therefore is lawfully binding and enforceable ( as explained in item ) .

TASK-1 ( degree Celsius )

Meaning and consequence of different types of footings in a contract.

Footings are the promises the parties make to one another as portion of the contract. The footings therefore determine the rights and duties of each party to the understanding.

  1. Express footings.These are promises specifically made by either of the parties at the clip of the contract and it becomes portion of the contract.
  2. Implied footings:Implied footings are promises which are non specifically agreed by the parties, they may non even have been mentioned or considered, but which are however presumed to be portion of the contract. Footings may come to be implied into contracts, either by Parliament under a legislative act or by the tribunals.

It is good established that a contract may be subjected to footings that are sanctioned by the usage, whether commercial or otherwise, they have non been expressly mentioned by the parties. .

3. Conditionss and Guarantees:Contract footings have either been classified as ‘conditions’ or ‘warranties’ for the intent of make up one’s minding what redress is available to the ‘innocent’ party in the instance of a breach.

4. In nominate ( intermediate ) Footings:Harmonizing to this attack, the ‘innocent’ party will merely be able to end the contract if the consequence of the breach was to strip him of well the whole benefit of the contract.5. Exclusion clauses:Many contracts include a term by which one party seeks to restrict fiscal claims against it in the event of loss or harm to the other party, or to except itself from legal liability wholly. Exclusion clauses are capable to command by both the tribunals and legislative act, to forestall maltreatments.


Barker and Clive Solicitors


January 25, 2015

Carl Smith

Training Officer

Address… .

Subject:Legal issues and Torahs involved in on-line purchase of goods.

Dear Carl,

Hope that this missive finds you in good spirit. I am composing to you in response to your missive wherein you have inquired about the legal issues involved in on-line purchase of a set of DVDs on Team-building preparation.

I have studied your affair and want to inform that Under the Consumer Contracts Regulations your right to call off an order starts the minute you place your order and does n’t stop until 14 yearss from the twenty-four hours you receive your goods.Once the contract is cancelled, any recognition understandings entered into at the clip of the contract are cancelled every bit good. A figure of Torahs give consumers a legal right to call off contracts in specific minutess within a short clip after the consumer marks the contract, and without giving the marketer or other party a ground or holding to demo “ legal cause. ”

In order to call off, the purchaser must subscribe and day of the month the cancellation notice, which must province that the purchaser is call offing the contract. The purchaser should direct the notice to the marketer by certified mail, return reception requested, at the reference that the marketer has given in the sale paperss. The purchaser should maintain a transcript of the notice for his or her ain records, and to be able to turn out that the notice was given and what was said. Since you e-mailed Authoritative Training to call off the order in less than an hr, so your order may be cancelled by virtuousness of jurisprudence.

Direct Training invited you with their advertizement demoing the monetary value ?75 for the DVD set. Law considers the monetary value ticket as an invitation for you to do an offer to buy the point at that monetary value. The offer was clear, definite and expressed and there was nil to negociate, so your credence completed the contract on the footings specified by Direct Training at the clip you placed the order. However, if the monetary value advertised on the web site turns out to be wrong, so they do non hold a legal committedness to finish the sale: By jurisprudence an advertised monetary value is non a contract of sale, so the marketer can decline to finish the dealing if the monetary value has changed, in likeliness that advertised monetary value was non intentionally misdirecting.

If there is an obvious mistake in a monetary value displayed, the provider will non be bound by that monetary value if the provider corrects the mistake and informs the consumer of the right monetary value before the sale is concluded. The provider is non obliged to sell the goods to the consumer at the obviously wrong monetary value. Since Direct Training corrected the mistake and informed you via electronic mail, they are non bound by jurisprudence to sale the DVD set on the erroneous monetary value. So, its better non to anticipate any favour as it is improbable that any action will ensue in compensation ; particularly as technically the merchandise was non sold.

After holding discussed the legal issues in item, it would be more practical and advisable if you let the order completed with Classical developing alternatively of direct preparation. It would at least salvage ?10 to the company.

Hope that the missive has addressed the right legal concerns.



Barker and Clive Solicitors


January 25, 2015

Dear Lan Page,

I am composing you with mention a missive from an apprentice’s female parent. Asad’s female parent wrote about the inside informations of the apprenticeship they entered with Mr.Abdul Bashir. The apprenticeship signed between Mr. Abdul Bashir and asad lawfully binds them into contract for a period of three old ages. As per jurisprudence, the preparation contract lawfully binds Asad and Abdul Bashir for the term of the apprenticeship ( 3 old ages ) . The standardised contract footings define the duties of learner. Furthermore, if Mr. Abdul Bashir is offering apprenticeships for rather some clip now, it must hold besides been signed/approved by a regulative organic structure, by the given footings and conditions. Equally long as everything within the contract is agreed upon and signed and dated by both parties, it is lawfully adhering.

2 ) . When two companies enter into an understanding to make concern together, the understanding is sealed and documented to organize a standard contract. The outstanding advantage is that minimal hazards are involved and cut down legal costs. The criterion contracts besides provide greater certainty sing the contract footings, supplying clear legal specification and protection to both the parties. It saves clip and costs by go forthing small room for dialogues.

The chief disadvantage of the standardized contract is the Boilerplate. It is what has been intentionally missed out of the contract. So, winning a difference would non convey any advantage if the individual publishing the contract has deleted the portion that says the also-ran in judicial proceeding will pay the victor ‘s lawyer fees. Another job with boilerplate is the subdivision that says differences will be resolved by arbitration alternatively of a case.

Monetary value repair is another disadvantage of standardisation of contract: monetary values are made portion of the standardisation.

Language job is a major disadvantage. Use of some words may alter a simple proposal to an duty. Just as specified in Clause ( a ) of the standardized contract Asad signed in apprenticeship.

The standardized contract inherently favours the publishing party. Like it favous Mr. Abdul Bashir being the employer and issuer of apprenticeship footings.

Would be waiting for your return on the same.




Barker and Clive Solicitors


January 25, 2015

Hotsafe Ltd.

Vicarious liability occurs in instance of breach of any term or portion of the contract by an employee moving on behalf of the company ; therefore the proprietor of the company will be held apt. Same regulation applies in the instance of assorted contracts and concern traffics. As per definition of Winfield, Liability arises from the breach of the responsibility, as fixed by jurisprudence. Therefore indirect duty lies on Hotsafe Ltd as a consequence of inability to transport out the service by one of the employee of the company ; the breach of the responsibility calls for compensation of unliquidated amendss.

Legal liability in this instance arises as a consequence of breach of contract that you have entered into with Garside. The amendss occurred to Garside are the consequence of carelessness. And carelessness has important affect in concern contracts. As per concern contract signed between your company and Garside, your company was obligated to transport out the service as per agenda. As per jurisprudence, if a party to a contract suffers loss for the negligent act of the other, the complainant is entitled to seek alleviation for the carelessness. The presumed carelessness in this instance is fulfilling the four conditions for the award of amendss.

  1. Your company was bound to execute the legal responsibility.
  2. Failed to execute that responsibility ;
  3. The complainant ( Garside ) suffered an hurt or a loss ;
  4. The negligent act is the proximate cause of the hurt.

You will hold a defence against this carelessness merely if the carelessness act besides has some part on portion of Garside, depending upon his portion in this carelessness. But this can merely be investigated on court’s order.

Another defence would be to demo that you have taken all sensible stairss to guarantee the bar of such Acts of the Apostless or skips hence supplying a statutory defence. If you are holding in topographic point an up to day of the month policy, a codification of behavior, duty division and repair, implemented preparations, and clearly communicated policies to all the employees of Hotsafe Ltd. In this instance, any incident resulting due to carelessness of an employee should be followed by a rigorous action against the employee. This may salvage the company against any serious harm claim.

I hope that this would give the necessary legal position on the issue and you get out of it with the appropriate steps.


……………… .


Web pages

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