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Elements of a valid contract (Summary (Capacity, Consent, Intention,…
Elements of a valid contract
Agreement (Offer & Acceptance)
Offer - When one person asks another to enter into a deal with them. Terms must be stated clearly and completely without any conditions attached. Verbally/Physically/ In writing
Accpetance - When the person being offered the valuable etc. agrees precisely to all terms without any conditions
Summary
Capacity
Consent
Intention
Legality of form
Consideration
Legality of Purpose
Agreement
Consideration
It must b.e real and valuable and the contract cannot be for free
One person must give the other person some form of payment in return for the promise made for there to be a valid contract.
Consideration is the item of value that is exchanged between the two parties.
Consent to contract
Both parties must give their real, voluntary and genuine permission
There cannot be any mistakes or lies, they cannot be forced into the contract and cannot be trcked into it either
Intention to contract
Both parties must mean the contract to be a legally binding agreement.
They must fully understand that they will end up in court if they break their promise.
In Irish law, agreements between family members for non-business transactions are not contracts while agreements with businesses are always contracts.
Legality of Form
This means that certain contracts must be written or layed out in a certain way or form if they are to be legal contracts
Legality of Purpose
This means that contracts must be for legal transactions meaning no agreement that involves breaking the law is a contract.
Capacity to Contract
This means every person in Ireland has the legal right to make a legally binding contract except certain people including people under 18, people who are under the influence of alcohol or drugs, and/or of unsound mind.