Element of contract
1. What is contract?
•
It is an agreement
that is legally binding
between two or more
parties.
•
Contract Act 1950 – S2(h) states ‘an agreement enforeable by law’ is
an contract.
2. State the necessary elements for
formation of a contract/
•
Offer
•
Acceptance – clarity of term
.
i.e. the terms of the contract must be clear and precise so that the parties know
what they are agreeing t
o – S30 CA
•
Consideration
•
Intention to create legal relations (ITCRL)
•
Certainty
•
Capacity
•
Consent – free from vitiating factors
