Contract Law Without Foundations In Clark
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The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
The contract is initially an agreement when the person to whom the offer is made indicates his acceptance of the same. In other words, an agreement is the foundation of a contract.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
Contract law, for example, can be divided into two kinds of rules: default rules and mandatory rules. Whereas the default rules can be modified by agreement of the parties, mandatory rules will be enforced, even if the parties to a contract attempt to override or modify them.
Contracts are made up of three basic parts – an offer, an acceptance and consideration. The offer and acceptance are what the purpose of the agreement is between the parties. A public relations firm offers to provide its services to a potential client. An electrician offers to wire a new home.
Mutual assent, expressed through a valid offer and acceptance, lies at the foundation. Both parties must clearly understand and agree to the terms outlined in the contract. Additionally, consideration, or something of value exchanged between the parties, must be present to support the contract's validity.
The main principles which govern: •entry into a contract •the terms of a contract; the principal policies and values underpinning contract rules; existing areas of debate about what the law is and what it ought to be.
The theoretical foundations of contracts include the principles of freedom of contract, sanctity of contract, and caveat emptor. Freedom of contract means parties have the liberty to enter contracts of their choice, while sanctity of contract means validly formed contracts will be upheld.
The idea of consideration is vital to contract law because, in order for a contract to be enforceable, there must be “mutuality of obligation.” In other words, in order for a contract to be valid, both parties to the contract must be required to perform under the contract.
For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.
