1. Agreement ok 2. Consideration ok 3. Intention to create legal relations There must be an intention among the parties that the agreement should be attached by legal consequences and create legal obligations. Agreements of a social or domestic nature do not contemplate legal relations, and as such they do not give rise to a contract. An agreement to dine at a friends house in not an agreement intended to create legal relations and therefore is not a contract. Agreements between husband and wife also lack the intention to creat legal relationship and thus do not result in contracts.
4. Form (writing and registration) A contract to be valid, must be in writing and registered. For example, it requires that an agreement to pay a time barred debt must be in writing and registered to make the agreement enforceable by law which must be observed. 5. Capacity ok 6. Certainly Agreements, the meaning of which is not certain or capable of being made certain, are void. In order to give rise to a valid contract the terms of the agreement must not be vague or uncertain.
It must be possible to ascertain the meaning of the agreement, for otherwise, it cannot be enforced Illustration ,A agrees to B’a hundred ton of oil’ there is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainly. 7Legality ok Let’s us discuses about the contract between John McGurk and Collin McMellend first. This is void contact,and there are few elements can apply in this case. Collin McCellend didn’t check on John receives the telex or not and this is the evidence of the responsibility not totally causing of John for breach the contract, and this isn’t completed agreement.
Even Collin McCellend sent the acceptance to John but due to inferior performance ,it cannot under valid contract,this case is negligence file. The action is not intentional,and planned. Technology problem is the main clause in this situation,and injury is created to Collin. Then the contract between John McGurk and Ford,is valid contract. John receives an offer form Ford at 2:30pm,and he accepted,both of them are contractual capacity,they arranged the contact by telex and John sell it 60000 which is consideration and they trade a lawful object -car.