Formation of a Valid Contract Flashcards
what is the formation of a valid contract
1)There must be offer
2)There must be acceptance
3)There must be
consideration
4)Parties must have full contractual capacity
5)There must be an intention to create legal relations
What else is under forms of contract?
1)A contract that supports consideration is especially expected to be writing and yet binding on the parties depending on the particular circumstances.
2)The fact remains that a contract may not be taken as invalid or unenforceable for the mere fact that is it in a written form.
What are contracts that must be written?
1)Transfer of shares in a public company
2)marine insurance
3)hire purchase agreement
4)bills of exchange
5)promissory notes
What are classifications of a Contract?
A contract depending on its nature, can be oral, written under seal or implied from the conduct of the parties.
What is a Formal Contract?
1) It is a contract made by deed- A deed is a legal document that transfers ownership of an asset to a new owner.
2) it is also know as contract made under seal.
3)Contracts made under deed don’t need to be supported by consideration to be enforced in law.
4)it is a contract of ancient origin that and its validity from the form of it.
What are Simple Contracts?
All other contracts that are not formal are under simple contracts.
A simple contract maybe written or oral but not under seal. Oral contracts are also known as parol contracts.
Difference between Simple contract and Formal Contract?
Only a person who has furnished consideration can being an action to enforce the contract.
What is the significance of a Simple Contract?
The validity of the contract depends on the presence of consideration
What is express contract?
A contract is said to be expressed when the terms are clearly stated. In an express contract, the extent of the respective obligations of both the offeror and offeree are clearly stated either orally or in writing.
What is implied contract?
A contract is said to be implied when the terms are not stated.
What is a Bilateral Contract?
It consists of an exchange of a promise for a promise
What is Unilateral Contract?
Only one party is obliged from the onset while the other party is completely free whether or not to accept. Where one party is to set a stage for the other party to react or accept.
