Table of Contents
1 Part 1
1.1 Importance of essential elements of valid contract (Task 1)
1.2 Different kinds of contract (Task 2)
1.2.1 Business Scenario and Explanation
1.3 Analysis of the statement (Task 3)
2 Part 2 (Analysis of the business situation)
2.1 Analysis of different legal position (Task 1)
2.2 Analysis of Angelo’s buying condition (Task 2)
2.2.1 Buying condition A
2.2.2 Buying condition (B)
2.3 Critical analysis of UCTA and UTCCR (Task 3)
Contract is essential in any business transaction because it protects the interest of the parties. There is full of contracts, agreements and promises in the business milieu. These contracts can be oral and written. Oral agreements can be used in businesses but in most businesses the parties use formal written form of contracts when they engage in operations. A written contract is stronger than oral one. Written contracts provide individuals and businesses with a legal document stating the expectations of both parties and it show the path that how they will face the turbulence situation if arise. Contracts are legally enforceable in a court of law. Contracts are considered a tool and safeguard for their resources.
A contract is a promise which is legally enforceable. It differs from any other verbal promises. Contract creates legal bindings between/among the parties. To determine the difference between contract and other promises there is some basic elements which convert a promise into a contract. The following are very fundamental for a valid contract –
These are the three main features to make a valid contract.
In addition to these three essentials there are more elements which need to fulfill for a valid contract. These are –
The above elements are necessary requirement to form a valid contract in the eye of law. The absence of any above fundamental element contract may become invalid and absence of other necessary element of contract it will be fragile and cannot be enforceable in the court of law. So it is mandatory to fill the requisite of contract in order to get protection of the rights and obligations of both parties under the contract act.