Essay About Essential Elements Of Valid Contracts And Specific Contract

Business Law Solution
Contract is an agreement, which is enforceable by law, and an agreement is a set of promises between two or more than two people. Following are the essential elements of valid contracts:Acceptance and offer should be proper, there must be agreement between two parties which should be based on valid lawful offer made by person to other person and that offer should be accepted which then becomes agreement. Consideration for the contract should be lawful, Consideration is something given in return for the specific contract. This consideration should be lawful and considerable. It can be past, future, or present.Consent for the contract should be free from any binding, this means the consent should not be manipulated and it should be free. Or else this contract is considered as a fraud, coercion, undue influence or mistake.Party in contract should be valid and should have capacity to contract.The object for which the agreement is made is not illegal or unlawfulThere should be intention between both the parties to make legal relationships.The agreement should not have been declared as void or illegal.The following are the different types of contract which can be used for increasing the business of leasing of vansDay leasing by giving vehicles on lease for short period of time and for providing vehicle for flexible period of time.Flexible price contracts.Cost plus contractsHour based contractsRequirement based contractsPeriod based contractsContracts based on number of days vehicle required and number of vehicle required.Hence, Car-Rex should tailor every contract according to the need of the customers.(Pandia 2000)When there is contract between two parties there are also some terms and condition to that contract and parties are bound to follow that policies as the contract has been accepted by both of them. Following can be the valid terms In contracts,Consideration policies, parties to contract agree to a policies for the consideration of the contract and should also follow that upon completion of contract. In the contract between Car-Rex and agent the terms of payment is to pay 50% advance and if after paying advance if the other party does not turn up then the Car-Rex can sue the agent and can claim damage compensation for the problem.Here in the contract there is agreement between Car-Rex and Agent and since agent is representing his boss there is direct contract between Car-Rex & Jack.Car-Rex is also bearing the damage on its reputation and hence can claim damager for the damage done on its brand image.Here also jerry has paid 50% amount upfront and hence jerry can sue directly Jack as the contract with agent is deemed to be contract to be with person itself if agent discloses its identity. If agent does not disclose its identity then Jack cannot be held responsible for the issue, as he is not a party to contract.Hence, Party to contract can also be third person and if terms are agreed and then there is breach in terms of policy then party responsible should be penalized by other party.( Contract act 1872)While entering in contract there can be some mistake, which can lead to problems and issues during execution. Mistakes are erroneous belief that the contracts are true and the facts agreed upon are required. Mistakes are of two types;Mistake of law-If both parties enter in to contract without the knowledge about the law in the country then that contract is not void unless it is illegal and it is not even voidable unless the clause is entered in the contract to make it voidable. Hence, mistake of law is entering in contract without knowledge of proper contract act.