Five Essentials Of A Valid Contract

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A binding contract is an agreement between two or more parties, giving rise to rights and obligations are recognized and enforceable by law. The five essentials of a valid contract are capacity, offer, acceptance, intention to form legal relations and consideration. Capacity is the first element to form a legally binding contract. The three factors are minority, intoxication and insanity. The three factors have to be present in order the person to enter into a contract. The contract will be unenforceable or is said to be void against the person if any of the three factors are absent. Firstly, the minors are below the age of 18. The law states that contracts entered by minors are not binding against them because they may not fully appreciate the consequences of their actions. The contract with the minor can be binding if it is a valid contract for necessaries, beneficial contracts for the minor’s health, education and welfare, and voidable and rectifiable contract. For Alfred’s case, the contract is not binding because Alfred who is 16 years of age enters into a contract that is not for necessity. Necessary goods are not restricted to basic necessity. In an addition, regard must be given to minor’s station in life and his requirements at the time of sale and delivery. Referring to Nash v Inman [1908], the court held that it was not a necessity as Nash has already had ample supply of clothes. Similarly in Alfred’s case, he decided to purchase five Macbook Air laptops

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