Question

-Explain what is meant by capacity to contract?

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-Explain what privity of contract means?

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-Explain what is an invitation to treat?

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-Explain in detail the 3 essential elements of a contract:

-Intention

-Agreement

-Consideration

Answer 1

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Explain what is meant by capacity to contract?

Capacity to contract means parties entering into a contract must be competent or capable to perform that contract. It is very important element of a valid contract that person in a contract must be legally competent to perform and understand tems and conditions of a contract.

for examples-

a minor is not legally competent because of under age so not allowed to form a valid contract.

A person who is not of sound mind does not have capacity to contract.

Explain what privity of contract means?

Privity of contract means that only legal parties involved in a contract has the right to sue each other. under common law,This legal doctrine does not grant right or obligation to third party who is not part of a contract.

for example- if I purchase a bike from my friend for $1000 and does not pay him then my friend has the right to sue me not his brother or any third party.

Explain what is an invitation to treat ?

Invitation to treat means an mere willingless or declaration to negotiate so that it can lead to creation of an offer. Invitation of treat allows other parties to make offer based on the invitation given to them. This is not considered to be an offer as it is just mere invitation to negotiate.

Example of invitation to treat are advertisement by companies like Samsung offers to sell its TV at 30% discount price limited period only or auctions are invitation to treat.

Explain in detail the 3 essential elements of a contract:

Intention is one of the essential elemnt of a contract to make it valid or enforceable. Intention means parties entering into a contract must have intention to enter into contract and legally bind with it.

for example- i want to purchase a house of my friend and he wants to sell it then there is intention that we want to enter into a contract and legally binding in nature.

Agreement means an arrangement between two parties where acceptance of offer is made by another party and agree on terms and conditions of agreement.

Agreement can be undstood when An offer is made by a party known as the offeror, presents terms of a contract to another party. The second party which receives the offer known as the offeree. If the offeree accepts the offer, the two parties are considered to be in agreement.

Consideration is the very important element of a valid contract. Consideration means something of value in exchange of performance. Consideration is essential to legally bind a contract. It is generally in terms of money price.

for example- I offer my friend to buy his car for $5000 and my friend accepted the offer so the consideration is $5000 in exchange of car.

Note- deas student please know that only one question per post allowed with 4 parts of same question you posted 4 different questions. still attempted for your help. please give LIKE and UPVOTE for my efforts. Thank you.