Question

List and explain each of the six requirements for a legally enforceable contract.

List and explain the three tests that an offer must pass to be considered valid.

When it became clear that Oscar’s parents needed someone to live in and care for them, Oscar offered to do it. Within a month of moving in, he told his parents that he would leave unless they signed all the real estate over to him and gave him power of attorney on their bank accounts. Within four months after they did this, Oscar put his parents in a nursing home. Would Oscar’s threat to leave be considered legal duress? Could this be considered undue influence? Explain your answer and be sure to summarize the definitions of duress and undue influence before analyzing the situation between Oscar and his parents.

Answer 1

1. There are six basic requirements in a legally enforceable contract:

·         An offer.

An offer is the willingness of one party to enter into a legally binding contract with another person. An offer to be valid should consist of an intent to enter into an agreement, the terms of the offer should be definite and certain and the offer can be communicated by means of an email, letter or orally.

·         An acceptance.

For a contract to come into effect, it should be accepted by the intended person according to the terms of the offer, unconditionally.

·         Competent parties who have the legal capacity to contract.

The parties to the contract should be legally competent to enter into a contract. A minor, drunk, insane or any incompetent person cannot enter into a contract.

·         Lawful subject matter. The subject matter of the contract should be legal and moral.

·         Mutuality of obligation. The parties to the contract should have the intent to do so, and there should be a meeting of the minds of both parties.

·         Consideration. An enforceable contract should have consideration it is “something in return” for a promise.

2.An offer to be valid should consist of an intent to enter into an agreement, the terms of the offer should be definite and certain and the offer must be communicated.