Legally Binding Contracts

Legally Binding Contracts

Advice Simon of the Legal Requirements of a Legally Binding Contract With Kylie Under English Law

Formation of a Contract

A contract is an agreement that is legally binding whether written or oral made through a promise to fulfill an obligation in exchange for consideration. For it to be lawfully obligatory and enforceable,  four components are necessary, which include an offer, an acceptance, a consideration, and the intention. When any of the four elements are absent, the contract would be considered null and void. It is, therefore, paramount that these components are well understood (Lecture 3). An offer is an explicit declaration of terms or conditions, whereby the offeror makes a promise, and the offeree receives this promise. However, for this offer to be valid, the agreement should state the terms clearly. In addition, there should be intent to do business or action, and the offer must be communicated to the other party. In Guthing vs. Lynn [1831], one was buying a horse and promised to pay an extra amount only if the horse happened to be lucky for him. The court held that the condition was extremely ambiguous and could not be enforced. Given that, it would not be regarded as a valid offer.

Another vital component to note during an offer is that it is usually the last word before the acceptance of the proposal. Before acceptance, one must be sure that the offer is valid or there can be no contract.  Some of the statements that can be confused as an offer include an invitation to treat or statements made during negotiations (Lecture 3). For example, advertisements or goods displayed on a window are merely invitations to treat. It means that the seller has the right to decide whether or not to accept an offer.

When parties are making contracts, at times, there can be lengthy negotiations. It implies that they may make statements during such deliberations which should not be considered as an offer. For instance, in Harvey vs. Facey [1893], Harvey wanted to purchase land that Facey had not publicized for anywhere. He sent Facey a telegram inquiring about the lowest amount that Facey would consider selling the property. When Facey told him the price, Harvey tried to accept it as the price. The court held that the parties had no contractbeen made because the statement of an amount was just an initial stage in the negotiations and did not constitute a binding offer. Finally, when it comes to the communication of the offer, it should be presented to the offeree since he or she needs to know about it for them to accept it.

Termination of an offer is also critical for parties to know when an offer is no longer valid. An offer can end when the offeree dies, when the offeree has accepted the offer or where the offeree turns down the offer. Moreover, an offer can be terminated by a counter offer, whereby there is an attempt to change the conditions of the agreement. Still, parties can terminate a

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