Question

BUSINESS LAW

1.    Tell me the four elements of an enforceable contract - hint (offer and acceptance make up "agreement", the first element) and after you do that, tell me the elements of a valid offer, and the elements of a valid acceptance.

2.   List at least 4 material items that you would see under the common law in a contract.   (I don't mean specific terms, although that is one of them ("material terms").

3.   Please tell me a) at least 5 types of contracts that the Statute of Frauds would require to be in writing and then tell me b) the four exceptions to the Statute of Frauds.

Answer 1

Essential Elements of a Valid Contract :

• Offer and Acceptance
• Intention to Create Legal Relationship
• Lawful Consideration
• Capacity of Parties
• Free Consent
• Capacity to Contract
• Lawful subject matter
• Certainity of meaning
• Possibilty of performance
• Not declared to be void of illegal
• Legal Formalities

Elements of Valid Offer :

• It must be capable of creating legal relationships.
• It must be certain, definite and not vague.
• Offer must be communicated to the offeree.
• Offer must be made with the view the view to obtain the consent of other party.
• An offer may be conditional.
• Offer should not contain a term the non - compliance of which would amount to acceptance
• An Invitation to offer is not an offer.

Elements of Valid Acceptance :

• Acceptance must be absolute and unconditional.
• Acceptance must be communicated to the offeror.
• Acceptance must be made within a reasonable or specified time.
• It must be according to the mode and prescribed.
• Acceptance must be given before the offer lapse or revoked.
• The Acceptor must be aware of the proposal at the time of offer.
• Acceptance cannot be implied from silence.

Material Terms in a Contract

• Time Lapse
• Price
• Quantity
• Subject matter
• Type of work to be done
• Terms of payment or performance