Elements Of Contract

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Elements Of Contract by Mind Map: Elements Of Contract

1. Section II of contracts ACT 1950 : A person is competent to a contract is: *Of the age of majority- according to law * Of sound mind * Not disqualified from contracting by any law

2. OFFER

2.1. One party make the offer another party accepts the offers and both party achieve.

2.2. Invitation to treat

2.3. An invitation to treat is not an offer, it is an offer to receive or induce offer.

3. ACCEPTANCE

3.1. When the person whom the proposal is made signifies his assent, the proposal is said to be accepted becomes a promise

3.1.1. Section 2 (b)

3.2. The person accepting the proposal is called promisee

3.2.1. Section 2 (c)

4. CONSIDERATION

4.1. Both parties must have provided consideration,ur, each side must promise to give or do something for the other

4.2. Section 2b

5. CAPACITY

5.1. Parties entering contract must competent have legal capacity to contract

6. INTENTION

6.1. Purpose

6.1.1. 1. Social and domestic arrangement

6.1.1.1. There is presumption that parties do not intend to create legal relation

6.1.1.2. Cases : Balfour & Balfour

6.1.2. 2. Commercial arrangement

6.1.2.1. There is strong presumption that the parties do intent to create legally binding contact unless otherwise stated

6.1.2.2. Cases : Rose Fank & Crompton Bros

7. CETAINTY

7.1. Section 30 contacts act

7.1.1. Agreement the meaning of which is not certain or capable of being made certain are void

7.1.2. Uncertainty issue

7.1.2.1. 1. Language used is too vague where normally it will be not concluded

7.1.2.2. 2. Fail for incompleteness failure to reach agreement on a vital or fundamental term of an agreement