Essay Example on A valid contract is an enforceable contract

A valid contract is an enforceable contract if a party has agreed to an action which could be obliged to abide with the legal procedure made upon However an unenforceable contract is also valid but it is not enforced by the court if the agreement agreed upon is not done A contract is usually conditional which means that a party normally should do something as an exchange to another party and is usually enforced by law If a party has approved and agreed to accomplish the condition of that offer then the contract is formed and the condition are legally binding A contract should consist of four elements to be legally binding which are an offer an acceptance a consideration and an intention to form a legal relationship The contract should therefore also consists of a mutuality of obligation and an expressed or implied terms Offer and Acceptance The acceptance of an offer can usually be made verbally or written This takes place when one party the offeror has proposed an offer and the other party the offeree has approved to it However a few conditions should be agreed upon before the acceptance of that offer As the example given MamiKloon the seller offered to sell its cigarette lighter for Rs 50 and Salman the buyer replied that he would only pay Rs 45 and he didn t hear from the seller again It is concluded that there was no contract made between the two parties and the seller did not accept the offer of its buyer who has cancelled the seller s original offer by its counter offer which means a reduced cost This is therefore called a counter offer Consideration Consideration relates to the deal made in an enforceable or unenforceable contract 

As a contract refers to the exchange of something by two or more parties there should consist of both a promisor and a promisee and obtain a benefit on both sides This is referred as a consideration Generally all contracts demands consideration and that means each party should obtain a gain from an exchange Intention to create legal relations Intention to create legal relations is referred to as the aim to engage into a legally binding agreement It is one of the most important elements when creating a contract The principal component of the valid contract prerequisite the parties to intend to form a legal relationship There are two sorts of agreements that are Commercial Agreements and Social Domestic Agreements Social Agreements are made without the intention of occurring enforceable and are normally made amongst companions likewise Domestic Agreements are made between individuals of a family and does not require a legal relationship The advantages of creating a legal relation are widely beneficial as a contract is made enforceable and more powerful the parties involved obtain the right to sue another if the agreement is not done and the contract agreed is not just a mere promise 2 Explain the various terms of a contract and remedies available for breach in contract with the use of relevant examples for the above scenario 

A contractual term is any arrangement framing the content of an agreement Each term offers a step to a legally binding commitment as such breaching of a contract may lead to the proceeding of legal actions There are some terms which convey less lawful significance as are related to the aims of the contract and not every term are expressed explicitly Implied Terms are additional terms that have not been discussed between two parties but is mentioned in a contract is usually because it is useful information to the contract There are two sort of implied terms Terms implied by Statue and terms implied by Courts Express Terms can be characterized terms particularly discussed and approved by the parties involved at the making of a contract and can be both oral or written The significance of a term can be plainly comprehended by clarifying the contract As some contracts are composed of diverse kinds of terms some of them are more essential than others The different types of terms consist of conditions and warranties The more essential terms are called conditions and the less critical ones are called warranties Remedies available for breach of contract 

A breach of contract occurs when a party has not done as promised in accordance with the terms of a contract The remedies for such breach of contract include damages specific performance and rescission Damage is the most used legal remedy of breach of contract which are also referred as money damages It is a reward of sum of money used to compensate for the damage caused to an innocent party Specific performance is an equitable remedy and is put in practice when damage remedy is not a convenient to a situation It is a forced or obliged way of making the breaching party to perform something in the exact manner as agreed in a contract Rescission is another equitable remedy when a formerly exiting contract has been retracted due it was breached This agreement can be recomposed distinctively as for the parties involved are favorable with the terms