- Understanding the Essential Elements of a Valid and Legally Binding Contract

3528 Words Nov 1st, 2009 15 Pages
CONTENTS

Introduction…………………………………………………………….. 3

Task 1…..…………………………………………………………….…. 4

Task 2 ……………………………………………………………………8

Task 3 …………………………………………………………………...9

Conclusion……………………………………………………………… 10

References………………………………………………………………. 11

INTRODUCTION

In Assignment 1 in Common Law the basic notions relevant to business activities will be viewed. The purpose of this assignment is to apply basic theoretical knowledge of common law to day-to-day business practice. In this assignment particular cases will be considered from the legal standpoint.

Legal aspect has always been important to any kind of business. Depending on the scale of operations we can see legal departments in large multinational corporations or small
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12) Executory Contract – A contract that has not been fully performed by one or all the parties.

13) Executed Contract – A contract in which all parties completely carried out their parts of the contract.

As it has been previously mentioned, a void contract should consist of the following main components:

• Parties
• Offer
• Acceptance
• Consideration
• Legal purpose

These components are crucial to any contract. Without even one component the contract becomes void. Let’s view defenitions of each component given in article by Jeffrey Steinberger, a trial attorney (Steinderger, 2007)

Offer. It is a definite promise to be bound on specific terms. These terms should be certain, not vague. An offer can be made to an individual, a group or the world at large. To be certain and clear, an offer must supply information about the purpose of contract, e.g. goods or services. An invitation to treat has to be present in the offer. Termination of the offer is usually in the form of time and date. Another option is counter offer, the acceptance of which cancells the original agreement. (Gahir, 2009)

Parties. Anyone can enter into a contract, except certain felons and people of unsound mind. The contract must identify who the parties are; usually names are sufficient, but sometimes addresses

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