1) A contract by definition is a form of agreement that binds two or more parties who can involve in a legal relationship and will be bound to perform according to the terms and conditions that are agreed upon in the contract. 2) The essential elements of a contract are: ?Agreement: it is determined by the regulations of offer and acceptance. It is the most essential element and the very first one. An agreement is made when the offerer proposes his offer and the offerree accepts it. ?Consideration: it is usually a worthwhile for each party. It is necessary for an agreement to have this.
They are the obligations that put to assumption by each party. ?Intention to create legal relations: this is the final promise for the want to be legally binding. 3) The importance of the elements. a. Offer and acceptance: it is the main purpose of a contract. It shows that the parties have come to an agreement. b. An intention to create legal relations: This doctrine is has strong rebuttable presumption in the most commercial agreements that the parties should have intention for formation of legally binding relationship.
c. Consideration and privity of contract: it determines the existence of a contract. It contains a valuable being money or anything else. d. Legal capacity: a party cannot enter into a contract if they are incapable by law. For eg: intoxicated, insane or minors. They must be competent. They should clearly be capable of understanding the terms and conditions of a contract. 4) The significant differences between contracts made by: ?Face to face: A face to face contract implies communication of gatherings before one another and verbal offer and acknowledgement is imparted one another. This is a simpler type of agreement and more
dependable in which the offeror and offerree both are sitting before one another and there is no risk of any distortion. The reasonable comprehension of terms and conditions are talked about and well correspondence manifestation of offer and acknowledgement is given in this agreement consequently it is great superior to separation offering contract ?Distant selling contract: In the most creating and fast prepping of the global exchange, it is unrealistic to make all assentions by meeting face to face in this manner the extensive number of agreement is being executed through separation or virtual correspondence by means of email, postal and different prompt means.
The law gives full security and security to execution to the agreement being made through the above said means and these are additionally as tying as the eye to eye contracts may be ?Writing agreement: Composing agreements are the best type of assention which ought to be favored regardless. The terms and conditions ought to be composed plainly so that nobody can take a supplication for misconception of any of the terms. A composed understanding is less demanding to be implemented by law.
Every term and condition ought to be described in clear way. 5) Case studies CASE STUDY 1 1. It has been established in this case that sana and jim were in a contractual relationship when sana made the offer and asked the consideration of the boat and jim gave the consideration value intending he was ready to sell. This was a verbal or oral contract and hence to prove, it would be quite impossible by sana.
Ethically jim is bound to sell the boat to sana but he doesn’t hold the burden of being restricted to her until she comes to him. He can even go ahead to reject her over time because he is not legally obliged to proceed with the sell even though oral contract are legally binding and valid because sana cannot prove it. 2. Mr white was made an offer by Commodity dealers Ltd with all the terms of conditions but in response to that Mr white made a counter offer which makes the 7 days that Mr white had to accept the previous order out of question. Mr white had rejected the previous offer for the new counter offer and so he cannot go back to the first contract.
3. There is an offer and acceptance made through prompt means i. e. fax and according to contract law once the offer or acceptance is made utilizing immediate means, it will take impact at the time and spot of receipt. Saif offered to Hamid through Fax (Instantaneous mean) available to be purchased of Bugatti car and Hamed acknowledged through fax yet reacted purposely in the time when Saif was not in office. Saif after back in office did not check the fax and manage Tom, yet a while later at 4 pm he got another fax from Hamid and acceptance. By ethicalness of the above said tenet of Instantaneous means, my supposition is that the acceptance couldn’t be imparted to the offeror so there is no contract.
Hamid realized that the workplace amid time of his react will be shut and it is not certain that in the wake of returning to office Saif will without a doubt checked his acceptance fax. Consequently since the acceptance was made yet offeror did not get it so no development till that time. CASE STUDY 2 a. There was no legal agreement between Abdullah, Aysha and their child (Ahmed) for sharing the prize cash however suggested terms and conditions says that they had been taking part similarly in the crossword rivalry so they just as have the privilege to impart the prize cash. Ethically Ahmed is bound to share the money with his parents but legally the parents cannot demand it.
b. Marie made an offer to the firemen with the consideration of 250 Dhs although there was no acceptance by the firemen to this but they implied it by acting out the offer in acceptance. The act makes Marie bound to pay them according to her offer and it is a valid verbal or oral contract because there is proof of witnesses. c. The offer was not made to Amna that he the unmarked van party changes the tyre she would have to pay. For a contract there must be clear communication of the offer and the acceptance.
The offer is ambiguous. Hence amna is not obliged to pay 400 Dhs. d. Fadi was not acting on an offer by david. David just promised fadi which can be taken as a reward and not a contract. Since the act was done before david had mentioned the supposed consideration it cannot be taken as legally bound contractual relationship. BIBLIOGRAPHY http://www. answers. com/Q/Explain_the_importance_of_offer_and_acceptance_in_ forming_a_contract http://www. mpuu. org/archives/252.