Contract law

Question 1

Terms of contract

Answer 1

Offer
Acceptance
Consideration
Capacity to contract
Consent to contract
Legality of form
Legality of purpose

Question 2

Offer

Answer 2

This is when one this one asks another party to enter a contract . This offer has to be made unconditionally , this can be done oral, in writing or in conduct.

Question 3

Acceptance

Answer 3

This is when the party being asked accepts the terms of the contract. This can be done orally , in writing or in conduct. If one party changes an offer in the contact this is known as a counter offer.

Question 4

Consideration

Answer 4

Payment has to be adequate, legal , real and have value to both parties involved

Question 5

Capacity to contact

Answer 5

This is about the power of a person about to enter into a contract. The person must be over 18 except for any necessities. The person must be of sound mind , this person cannot be under the influence , the person cannot be bankrupt , directors that goes against the company policy

Question 6

Consent to contract

Answer 6

The person that is going into a contract must enter by their own free will. They should be no use of force , lies or undue influence eg elderly people and vunrable people l

Question 7

Legality of Form

Answer 7

This refers to how the contract is made. Can be done orally or in writing , some contracts must be done in a certain manner. Eg buying a house

Question 8

Legality of Purpose

Answer 8

Legally binding contacts can only be used for legal transactions.