(A) Consensus in idem Consensuses in idem, legal obligation and between parties are all important elements which need to exist for there to be a contract. Agreement Agreement is when 2 parties agree on the same thing. This is also known as CONSENSUS IN IDEM. This means Agreement to the same idea.
The parties to the contract must be in full agreement as to what the contract is essentially about, where they are not; the contract is to be rendered void. There are many reasons why not all agreements are given the binding force of the law. 1. The law may consider the promise not to have been seriously intended. 2. The law may disapprove of the tactics used to get the other party to agree.
3. The parties may not be mature enough to understand the nature of the agreement. 4. The agreement may not be to do something which is illegal or immoral. Legal Obligation This is which the courts regard are enforceable. Legal obligation is when the parties intend to be bound by the agreement and have the capacity to contract.
There must be patrimonial interest. This is when someone gains something and the other loses some kind of material possession. Agreement without Legal Obligation Social agreement – e. g.
making a date Agreements between spouses – agreement between married couple. Between Parties There must be 2 parties in the formation of a contract and they must conform to any relevant requirements regarding formalities if required. To create a contract, it usually consists of a offer by 1 person and an acceptance of that offer by the other (offer + acceptance = contract).
The Term Paper on Business Contracts and Legal Risks
Many companies today often don’t think about legal issues related to their business until they are hit with a lawsuit or decide they need to take legal action against someone else. The ramifications of a lawsuit as a plaintiff or a defendant can impact a company and even destroy a company and its reputation. This can happen if the company is not fully prepared on handling legal pitfalls that might ...
So basically when an offeror makes an offer and the offeree accepts that offer it is usually called a contract. Contracts can be formed by using actions like winking, nodding, handshake etc. Offer This is a statement from someone looking to enter into a contract.
An offer must be definite, capable of being accepted and the person making the offer must intend to be bound by the consequences of it being accepted. An offer becomes a contract when it is accepted by another person the way it is. When another person does not accept the offer as it is, and tries to make changes to the offer it is known as a counter-offer. Counter Offer This is an acceptance which includes added conditions is regarded as a counter offer. Counter offer basically kills off the original offer.
Acceptance This is when the person has accepted the deal / offer as it stands. This is how the offer becomes a contract. The principles of acceptance are: acceptance must be made in response to the offer, “meet the terms of the offer,” and be communicated to the offeree. .
