law of contract

Law of Contract

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Law of Contract

Last month, my friend agreed to transfer ownership of his iron box to me at half the original buying price but he reviewed the price at the last minute. His reason for reviewing the price was that the electrical appliance was as good as new and that he had used it for only one month. The agreement was by way of mouth and there was no third party present. My friend is 19-years old and I am 20 years old.

I can sue my friend for breaching our agreement because it met all the legal requirements for a contract. A contract is an agreement between two or more parties which can be enforced in a court of law. Elements of a contract according to (Koffman & Macdonald, 2010) are: intention to create legal relations offer, acceptance, consent, and capacity to contract, legal purpose, consideration, and intention to create legal relations. An offer is the expression of willingness to participate in an activity, it is a contract as soon as another party accepts the offer unconditionally. In my case, my friend offered to give me his iron box at half the buying price and I accepted unconditionally since it was a genuine offer. I accepted the terms of his offer and orally signified the acceptance.

The contracting parties must be legally able to enter into a contract. We are both above the age of 18 and are of sound mind hence we have the capacity to contract (Gillies & Selvadurai, 2009). Consideration is the amount of money requested by the person making the promise in exchange for their offer. The amount requested was half the buying price.Parties establish a contract by consent through an offer and acceptance. The offer and acceptance was made orally; this indicates consent. Two parties must have the intention of creating legal relations for a contract to be enforceable. The price asked by the promisor proves the intention to create legal relation. Our agreement was legal because it did not violate the law.

References

Gillies, P., & Selvadurai, N. (2009). Law of contract. Sydney: Federation Press.

Koffman, L., & Macdonald, E. (2010). The law of contract. New York: Oxford University Press.