Contract

Definition

An agreenment creating obligations enforecable by law.

The basic elements of a contract are mutual assent, consideration, capacity, and legality.

In some states, the element of consideration can be satisfied by a valid substitute.

Possible remedies for breach of contract include general damages, consequential damages, reliance
damages, and specific performance.

An offer can be oral or writte as long as it is not required o be wirtten by law.

It is the definte expression or an overt acton which begins the contact.

It is simply what is offerd to another for the return fot hat person prmise to act.

Cannot be ambigious or unclear.

Must be selled out int erms that are specific and certain

such as the idetity and nature of the object which is

being offered under what conditions or terms it is offered

In order to form a contract agreement that is enforceable by law, the following six elements must be
fulfilled:

*Proposal or offer

*Acceptance

*Consideration

*Intention to create legal relations

*Capacity to contract

*Free consent

*Proposal or offer

Acceptance

As a general proposition of law, the acceptance of the ofer made by one party by the other party is
what creates the contract.

By general rule,

*cannot be withdrawn

* cannot be vary the terms of the offer

* cannot be alter or modify

* can be make into a counter offer by mking conditional acceptance, means that offeree is rejecting
the offer.

*still, from the offerer hand, by act or word that shows acceptance of the counter offer can be bound
by the conditions made
Consideration

Consideration fo a contract may be absolutely necessary element of a contract

For caution,

*it should be noted that consideration has to be expressly agreed upon by bohth parties or be expressly
implied by the terms of the contract

*A potential or accidental benefit are detriment alone would not be construed as valid consideration.

*A consideration must be eplicit and sufficient to support the promise to do or not to do, whatever is
applicable

*Must not be of any particular monetetary value,

*Mutual promises are adequate and valid conditional promises as well

*For additional clarification, a promise to act which you are already legally bound to od is not a
suffiecient consideration for the contract

*The courts determine the consideration/ application

-money

-another right,

-interest or benefits,

-may be a detriment

-loss or responsibilty given up to someone else

An intention to crate legal relations

Basic requirement to the formation of any contract

*in oral or written has a mutual assent or a "meeting of the minds" ( mutual agreement, mutual assent
or consensus ad idem) of the parties on all proposed terms andessential elemnts of the contract

*There can be no contract unless all the parties involved intended to enter into one.
*These intent is determined by the outward actions or actual worlds of the parties and not just their
secret intentions or desires

*Mere negotiations to arrive at a mutual agreement or assent to a contract would not be conseidered
an offer and acceptance even thought the parties agree on some of the terms which are being
negotiated.

*Both parties must have intended to enter into the contract and one can not have been misled by the
other.

*That is why fraud or certain mistakes can make a contract voidable.

Capacity to contract

The general presumptionof the law

*All peaople have a capacity to contract

*Anyone who avoid a contract would have to plead his or her lack of capacity to contract against the
party who is trying to enforce the contract.

*Secion 11 of the contracts act 1950 provides that :

"every person is competent to contract, who is of the age of majority according to the law to which he
is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he
is subject".

*means that the person ho enters into the contact must ahve the full capacity in terms of age and mind.
Age majority is 18 years-old