Legal Effect Of A Contract Essay

1881 Words Nov 21st, 2016 8 Pages
“ A contract is an agreement which gives rise to, or is intended to give rise to, a binding legal relationship or which has, or is intended to have legal effect.” A contract can be a bilateral or multilateral agreement. It can be gratuitous (when only one side of the contract has to be preformed) or onerous (when both are). It is formed when there is consensus in idem, known as a “meeting of the minds” between the parties. This means that all parties must agree on the same terms of the contract, as well as know and understand exactly what it entails. If there is a dispute about whether this was found, then the case can go to court . The contract can become void or continue; if consensus in idem wasn’t or was found. This has to be between two or more parties (typically between 2 and 20) who have to have the capacity to form the contract. If a contract is not formed properly they can become void, voidable or invalid. The contract has to be formed in good faith, if not the contract will be void. When forming a contract everything has to be clearly detailed so there is a meeting of the minds and there has to be clear dates of when the contract started. This proves very useful if the contract is taken to court. A contract is normally achieved after the offeror makes an offer and the offeree accepts it unconditionally. “An offer is nothing until it is communicated to the offeree”. An offer plus and acceptance is the basis of any contract. An offer is a submission of a statement…

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