Essential Elements to Form a Contract
Warranty
A promise in a contract that is of lesser importance; not a condition of the contract. Breach of warranty provides only rights to damages for the party affected by it.
What is a valid contract?
An agreement made between two or more parties that creates legal rights and obligations which the law will enforce.
What is an offer?
An offer is a proposal by one party enter a legally binding contract with another. An offer can be made orally, by conduct, or in writing. The offer must be clear and certain.
What is an invitation to treat?
An invitation to make an offer.
What are simple contracts?
Simple contracts are all contracts which are not deeds
What is a deed?
A deed is a written contract that has a clause added at the end which says 'signed, seal and delivered by.'
What is consideration?
Consideration is the price that is asked by the promisor in exchange for their promise.
If three essential elements are present what will be created?
If three essential elements are present a valid contract will created. These are the intention to create legal relations, offer and acceptance and consideration.
What are the types of contracts that need to be in writing?
a. Bills of exchange b. Assignments of copyright c. Contracts of marine insurance d. Contracts of the employment of seamen e. An acknowledgement of debt f. A transfer of the shares in a company g. Contracts for sale of land h. Guarantees
Condition
fundamental terms of a contract without which the parties would never had made the agreement. Breach of these contracts leads to the contract being voidable.
Injuction
An injunction is an order of the court restraining a person from doing a wrongful act.
Exclusion Clauses
Exclusion clauses are clauses, usually written down, that say that one party to the contract will not be responsible for certain happenings. For example, if you join a gym, it is common for the contract to say that the gym owner will not be responsible if you are injured while exercising on their equipment. These clauses are valid as long as they have been properly included in the contract and are not contrary to the law.
Specific Performance
Specific performance is a remedy which involves making the defaulting party carry out the contract as originally agreed. It will only be granted by the court if damages are not an adequate remedy and the court can supervise the carrying out of the order for specific performance. There are other considerations the court looks at but the above two are the most important. Most orders for specific performance have been made where the contracts are for the sale of land or the subject matter of the contract is of a unique nature: for example, famous paintings or items of jewelry.
Unconscionable Conduct
This means that a person has acted in such a way that it would be unfair for them to be able to enforce the agreement against the other party.
Damages
When one party is entitled to sue the other for a breach of contract there is no point in doing so unless the breach has caused a loss. The loss is referred to as damages. The court awards a money judgement as damages; that is, the court compensates the injured party by either awarding an actual loss or estimating an amount which compensates the injured party for loss.