Formation of the contract

Question 1

Consensus (definition)

Answer 1

• parties must have corresponding intention
• to create legal obligation
• with certain legal consequences between this

Question 2

Contractual capacity

Answer 2

parties must have the ability to:

• form intention and
• understand consequences thereof.

Question 3

Legality

Answer 3

• contract must be legal

- must not be in conflict with common law, legislation, public policy or good morals

Question 4

Physical possibility and certainty

Answer 4

performance must be possible and certain enough to be determined or determinable

Question 5

Formalities

Answer 5

means that a contract must:

• be reduced to its physical form or
• comply with specific procedures