Contract Law

Law of contract

A contract is an agreement between two or more people who intend to create a legal relationship with binding obligation . However , some of these contracts are valid but not enforceable . In this case , the contract that was entered into between Fahad and Mr . White was an agreement in which rights are acquired by one person to act or forbearance on the part of the other party . That is to say that Mr White intends to have a contract to sell his car to Fahad

Agreements can be made by

anyone but does not necessarily mean that there is a contract between the parties . The following are examples of these agreements

Domestic arrangements e .g . where a husband promises to pay his wife for her upkeep allowances , this is not considered as a contract

Gentleman 's promise e .g . when Philip promises to lend his car to his friend Alice for the weekend and then he refuses to do so , there is no contract between them

Social invitation e .g . When Moses hosts a party at home and invites his friends Carol and James . When they arrive and do not find Moses , they do not have a right to sue him since there is no contract between them

In the same cases , of the above persons have an intention to create legal relationship , so there is no cause of action in favour of the other parties

For a contract to be valid there must be an offer by one party and acceptance by the other . For example , Mr . White offered to sell his car to Fahad where Fahad accepted it and for this case , the contract is valid

The contract between Fahad and Mr . White is a simple contract since it was not in written form and it was not made by judgment of a court or recognizance , neither is it a speciality contract . A simple contract does not need to be any special . It could be oral as was with the given case

A contract has to be supported by evidence since it is a contract that involves paying a large sum of money . In for a contract to be enforceable , there are certain basic amounts that must be present . There must be an agreement based upon genuine consent of the parties supported consideration and must be made for a lawful object between competent parties

The following are rules that must be followed in case of an offer

An offer can be made to a specific person to any member of a group of persons or to the world at large , but it can not form the basis of a contract until it has been accepted by an ascertained person or group of persons . An offer made by advertisement can be accepted by anyone . For example in the case of

CARLIL VS CARBOLIC SMOKE BALL CO (1893

The defendants offered a reward of ?100 to anyone who contracted influenza after using their smoke ball for...