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Chapter 3 - Element to Contract - Coggle Diagram
Chapter 3 - Element to Contract
Consideration
Defination
Consideration is something that has a value in the eyes of the law
something of value given to someone in return for goods, services, or some other promise
Type of consideration
1) Executory
a promise in a return in the future
example:-
Husain promises to pay RM 800 for Danial's PS4 . When Danial deliver the PS4 to husain then Danial receive the money
2) Executed
Doing an act in return to a promise
-Example:-
Jas promise to reward Iesya if she help cleaning her house. Iesya help Jas and Jas reward Iesya
3) Past
Subsequent Promise made in respond to past act.
example:-
Azman found Alif's missing phone. Theen Alif promised to reward Azman because he help him.
Agreement Without Consideration
When both parties had an agreement between them , each of the parties has to furnish by consideration by give other something or do a favor as exchange.
A contract is void without consideration
Common Law Approach
Common Law is a universal law which is understood by everyone in the world
Common law is a body of unwritten laws based on legal precedents established by the courts. Common law influences the decision-making process in unusual cases where the outcome cannot be determined based on existing statutes or written rules of law
Intention to Create Legal Relation
Definition
Intention to create legal relations is defined as an intention to enter a legally binding agreement or contract. Intention to create legal relations is one of the necessary elements in formation of a contract. It is because, intention to create legal relations consists of readiness of a party to accept the legal sequences of having entered into an agreement. Intention to create legal relations is a motion of every contracting party must have the necessary intention to enter into a legally binding contract.
Difference between social, family and domestic agreement.
Family
Family agreement that occur within the family member or the trust one. For example will contract.
Domestic Agreement
a domestic contract is an agreement reach between two people in a family relationship, which outlines their particular rights and responsibilities. These agreement are legally binding. We should be prepare to respect the promise made by the contract.
Social
A social agreement are made between friends are made without an intention of being enforceable. Where the contract is of a social nature, the law is assumed that the both parties did not indent their agreement legally binding.
Business agreement
An agreement is an understanding or arrangement between two or more parties. A contract is a specific agreement with terms and conditions that are enforceable in court. A business agreement is at its core an exchange of promises and can be either oral or written.