Element of contract1. What is contract?•It is an agreementthat is legally bindingbetween 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 to – S30 CA•Consideration•Intention to create legal relations (ITCRL)•Certainty •Capacity •Consent – free from vitiating factors