Elements Of Contracts

It is generally agreed upon that a contract plays an important role in our daily lives. Each day as we buy a drink, take a flight on an aeroplane, purchase furniture or even enrol in a college, we are entering into a contract. A contract is defined as an agreement that is made between two or more parties, giving rise to legal rights and obligations that is enforceable by the law. Contracts are normally written but it can be spoken or implied, and generally have to do with sale, employment, lease, or tenancy. A contractual relationship is confirmed by an offer, acceptance of the offer, and a valid (legal and valuable) consideration. Each one gathering to an agreement secures rights and obligations with respect to the right and obligations of

According to Section 2(b) of the Contracts Act specifies that when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted: a proposal, when accepted, becomes a promise. Acceptance may be communicated, that is oral or in written form, and intimated from the conduct of the offeree. An acceptance should likewise conform to specific rules before it gets to be substantial and enforceable. Unless the proposer objects, failure to accept in detailed form refutes the acceptance. Section 7(a) also states that the acceptance must be absolute and inadequate which implies that the intention of the offeree to accept must be unmistakably understood with certainty, from his conduct. There are various circumstances in the certain situations where the behavior of specific parties gives off an impression of acceptance however the law does not perceive such conduct as acceptance. The case of Entorres V Miles Far East (1955) is a famous case regarding to this matter. The claimant sent a telex message from England offering to purchase 100 tons of Cathodes from the defendants in Holland. The defendant sent back a telex from Holland to the London office accepting that offer. The question for the court was at what point the contract came into existence. If the acceptance was effective from the time the telex was sent the contract was made in Holland and Dutch law would apply. If the acceptance took place when the

Every term of an agreement must be certain or capable of being ascertained. Where the terms of an agreement are not certain, the contract is void according to Section 30 CA 1950. Even though a manifestation of intention is intended to be understood as an offer, it cannot be accepted so as to form a contract unless the terms of the contract are reasonably certain. The terms of a contract are reasonably certain if they provide a basis for determining the existence of a breach and for giving an appropriate remedy. The fact that one or more terms of a proposed bargain are left open or uncertain may show that a manifestation of intention is not intended to be understood as an offer or as an acceptance. In matters of obligation, a thing is certain when its essence, quality, and quantity are described and distinctly set forth. It is uncertain, when the description is not that of one individual object, but designates only the kind. Certainty is the mother of repose, and therefore the law aims at certainty. If a contract be so ambiguous in its terms that its meaning cannot be certainly collected and the statute of frauds preclude the admissibility of parol evidence to clear up the difficulty, or parol evidence cannot supply the defect, then neither at law nor in equity can effect be given to it. By certainty is understood a clear and distinct statement of the facts which constitute the cause of action, or ground of defense, so that they may be