Offer and acceptance is one element of contract law. For a contract to be considered as one which is in existence, an offer by one party has to be accepted by another party. A contract should be clearly distinct from willingness to negotiate or strike a deal with a party. An offer can be made to a single person, a group or everyone in the entire universe. Offer is a definite promise to be bound and becomes legally binding after terms of offer are accepted. Acceptance is determined by way of statement or act. This means that it must be equivocal and communicated to the party which is giving the offer. Any given offer or in general invitations to an offer must not be deceptive in nature or misleading.
Intention to create legal relations is another element of contract law. A mere agreement is not legally binding but there should be intent to enter into a legally binding agreement. Even though not stated expressly/explicitly, intention to create legal relations can be derived from circumstances in which the offer and acceptance or simply the agreement was made. Agreements which are commercial in nature are presumed to include a rebuttable intention to create a binding agreement in legal terms. Domestic and social agreements are presumed by law as non legally binding unless they are enforced and proof is given that the parties involved intend to create regal relations.
Contract law is also about consideration. Consideration is the price paid for the promise of the other party and this must be something that can be valued and doesn’t have to be money, it can be some benefit going to one party, some right or something that has some value. Once a consideration is put in place, the adequacy of the consideration is never questioned by the court unless it doesn’t have any value. It also must be possible to do and most importantly, legal.
Another element of contract law is legal capacity. There are two categories of legal persons and these are natural persons and artificial persons. However, not all persons are at liberty to engage or enter into a legal or valid contract. This is where the concept of problematic consent comes in. These cases are treated in a unique manner. The problematic consents refer to cases involving, minors (under 18`s), bankrupt people, corporations, prisoners and those with mental impairments.
Consent is an element of proper understanding of contract terms and free will to enter into a contract. The consent of the parties involved must be genuine. In case there is ingenuity from any party of the contract, the consequences are dealt with under remedies for breach of contract. Matters affecting consent are mistakes, false statements, duress, and undue influence.
The last element of contract law deals with illegal and void contracts. The law will generally not enforce any illegal contract and if the contract is void. This is means that whether the parties involved in the contract are aware of the illegality or not.
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