The paper "Aspects of Contract and Negligence for Business" is an outstanding example of an assignment on business. a contract to be valid has to have elements of an offer, acceptance, capacity, intention, legality, and consideration (Miller, 2012). An offer is an expression by a party to another of an intention to enter into a contract. It has two parties, the offeror who expresses an intention to contract and an offeree, whom the offer is made to. In Scammel and Nephew Ltd v. Ouston (1941), an offer that referred to “ hire purchase terms” over a period of two years was declared void due to uncertainty over the meaning of “ hire purchase terms’ ’ , offeree would not have understood what he was purporting to accept and should, therefore, be clear.
An offer can be conditional or unconditional and can be made to the public. Acceptance is the external sign of consent by the offeree and could be express or implied from the conduct of the offeree. Acceptance in a legal sense takes place when the offeree mentally accepts the offer as that is when the minds of the parties meet.
There has to be a capacity to contract, which refers to the legal capability of a party or parties to enter into a contractual relationship. Usually, all persons have the capacity to enter into a contract but the law of contracts restricts the ability of some people such as persons below 18 years, drunken persons, persons of unsound mind, and undischarged bankrupts. A contract must be categorized by an intention on the part of the parties to create a contract. This is because an agreement is unenforceable unless the parties to it so intended, hence an intention is one of the elements of a contract.
Whether or not parties intended to create a legally binding agreement is a question of fact. The contract ought to be for engaging in activities that are legally approved or allowed. The purpose for which an agreement is entered must be lawful. A contract to promote an unlawful purpose is unenforceable.
Koffmann, L., and Macdonald, E., 2010. Law of Contract. 7th ed. Oxford University Press. p.152
Miller, R., 2012. Fundamentals of Business Law: Excerpted Cases. 3rd ed: Cengage Learning.
Sharma, A., 2007. Business Regulatory Framework. FK Publications. p.200