Contract Law Assignment Essay Example | Topics and Well Written Essays - 1500 words

Contract Law Assignment - Essay Example Consequently, statutes of the contract law serve as the custodian of the rights of the parties to the contract. â€Å"The Law of Contract is intended to ensure that what a man has been led to expect shall come to pass and that what has been promised to him shall be performed.†1 (Anson, 2002, p. 3) A legal contract requires some specific terms for its proper implication. Before embarking upon the terms of the contract, it will be worthwhile to explain few terms of contract law, essential to understand the valid contract, which are as under: Offer:2 â€Å"When one person signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.† However, the offer must be unconditional and intact one in nature, without containing any ambiguity in its nature or scope. For instance, A offers B to buy one of his properties against an appropriate amount, which does no t make a clear offer because neither the particular house to be sold is manifestly mentioned, nor does there exist any clear description of the amount against which the house would be sold. An offer may be specific or general; it is specific in nature when it has been made to a specific person or party. For instance, C offered D to enter into joint venture of managing an event at a hotel. Instead of D, E accepted the offer. It was held that since E had not been communicated in respect of accepting the offer, there did not create any legal liability between C and E altogether. Acceptance:3 â€Å"When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.† Like offer, acceptance should also be made in an adequate manner, and without any condition that could impose bar on the actual offer. For instance, if A has offered to sell B’s laptop at $ 2000, and if B agrees to buy the same at $ 1800, it would not be stated as acc eptance. Moreover, mode of acceptance should also be proper one. For instance, A has made an offer through the e-mail, the same could be accepted through the post mail, e-mail, telephone or text message etc. Additionally, acceptance should be made within an appropriate time period; otherwise, it would become time-barred. For instance, C made an offer of entering into partnership with D in an export-import business in June 2008; D did not reply to the offer till November, 2011. It was held that making acceptance of the offer after three and half years could not make the parties bound under the Contract Law, as D would have to enquire a fresh offer for the same. Agreement:4 â€Å"Every promise or every set of promises forming the consideration for each other.† Agreements may be either social or legal in nature. If an agreement has been made with the intention of entering into legal relationship, it would be legal one. And if the parties to the agreement do not have any intentio n of legal remedies, it would be just a social agreement. For instance, X invites Y to attend his marriage ceremony, and Y accepts the same. However, if Y is unable to attend the same, there will be no legal remedy for the same due to the nature of agreement, which is social one. In Balfour v. Balfour5, a husband had promised to pay his wife monthly pocket money during her illness. Somehow, he did not observe the same. The wife sued for the recovery of money. It was held that the contract was domestic and social