ASPECTS OF CONTRACT

Aspects of Contract and Negligence

[Name of Supervisor]

Table of Contents

Executive Summary3

Introduction4

Discussion4

Task (1) ([LO1.1, 2] & [LO2.2])4

Key Elements of Valid Contract4

Scenerio17

Difference between Offer and Acceptance12

Task 214

Scenario 215

Conclusion16

References17

Executive Summary

Katie is running a local business that deals with the event planning and management. For giving a new look to her shop, she wants to renovate it. She has heard many stories related to the cheating of builders so she is quite afraid and wants to enter in a contract. For this purpose, a valid contract is recommended to her.

Michael runs a shoe shop. Rafael is a customer who likes a pair of shoes in that shop. He looks at the sample and tells Michael that he wants that pair. Rafael agrees and offered a packed box of that pair of shoes. When Rafael opens that box in his house, he sees that the shoes look same as the sample but there is a big quality difference. A note is present in the box saying that things are not returnable at any case.

Aspects of Contract and Negligence

Introduction

A contractual agreement is considered as the most significant part of any corporate-related exchange in a business. The main objective of this agreement is to bring both parties at a comfortable level that helps in achieving a reasonable and fair objective for those parties who are involved in the agreement.

Discussion

Task (1) ([LO1.1, 2] & [LO2.2])

A contract is actually an agreement either to do or not to do something. By saying a contract is valid refers that it is enforceable and legally binding. The main purpose of a contract is to clarify an agreement to accomplish the object while preventing litigation or disputes.

Key Elements of Valid Contract Following are the four essential key elements of a valid contract.

Legal Competency: The first and most important element of a valid contract is the demonstration of the legal competency by both the parties. It means that it is required for them to meet the criteria of minimum age 18 years in order to enter into a contract legally. The main purpose of this law is to avoid the minors to enter into a binding agreement as they are not supposed e to be mature enough to understand the concepts of a contract clearly. If any of the party is not eligible to enter into a contract according to this law that party must present a legal guardian on his on her behalf. In this case the agreement will be considered as the responsibility of the guardian. Mental capacity of the parties is also involved in the legal competency (Helewitz, 2010.pp.341-367).

It is important to make sure that both the parties are intellectually and psychologically eligible to understand and fulfill the terms and conditions of the contract. Anyone who suffers through a mental disorder is considered to be ineligible for entering into a contract. The person who is observed to be under the influence of alcohol or drug is also considered ineligible of entering into a contractual ...