BINDING CONTRACT

Binding Contract

Binding Contract

Introduction

This kind of offer is not a binding contract. The fool who came to the dealer had no reasonable anticipation of winning a free vehicle, and the dealer never said it would reimburse travel expenses or the like.

The dealer would face likely fines by the equivalent of the buyer Protection Division in Australia, but as unfair as it seems, ads like this are not binding agreements because both sides have not persuaded the obligations to pattern a binding contract.

While dealing with cases from different law systems, it is very common that a legal term can have two different meaning in different law systems, which often cause confusion to both lawyer and clients. This is also what we will face in our future working as legal consultants in civil law countries in Australian firms.

The company has asked for an explanation of the important elements of contract, and how does these areas difference different form common law concept. From my point of view as the principal solicitor, there are six important elements in contract under common law; they are offer, acceptance, legal intension, capacity and legality. In civil law, the key elements may be differ from country to country, take French civil as an example, there are mainly four elements, they are consent, capacity, un objet and une cause. We can find that those elements under different law systems have their own distinct characters, but also have similarities. A clear understanding of those differences and similarities is essential for us to make advice for our clients while doing business in Australian firm in civil law countries.

There are four obligations which constitute what is generally referred to as the components of a lawfully binding contract. If only one of the four elements is not present, a legal bond is not able to be created. Listed below are the four elements of a valid contract;(1) Agreement: An agreement to shape a contract requires that it contain both an offer and an acceptance. This means that one party must proposition the entrance into a lawful contract; the other party must agree to the conditions and circumstances surrounding the offer.

(2) Consideration: Simply means that any covenant or promises that are made by the parties are required to be supported by legally sufficient and bargained-for consideration. promises of presents or ethical duties are not cogitated to be sustained by valid concern, something of worth such as currency; although is.

(3) Contractual Capacity: The parties are required to obtain contractual capacity. This refers to persons who are intoxicated, senile, insane, or a minor does not attain the contractual capacity required to ingress into an agreement or contract.

(4) Lawful Object: It is required that the purpose or object of the agreement must be legal. Contracts which go against public policy or that are aimed to achieve illegal activities are void. The intention of the agreement must be to achieve an objective which is lawful and not in opposition to public ...