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- Apr 21, 2005
- Sythe Gold
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These are the elements of a contract:
http://www.lawhandbook.org.au/handbook/ch12s01s02.php#
Intention to create legal relations
http://www.lawhandbook.org.au/handbook/ch12s01s02.php#
Intention to create legal relations
- A contract does not exist simply because there is an agreement between people. The parties to the agreement must intend to enter into a legally binding agreement.
- A contract is formed when an offer by one party is accepted by the other party.
- Consideration is the price paid for the promise of the other party. The price must be something of value, although it need not be money. Consideration may be some right, interest or benefit going to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other party.
- Not all people are completely free to enter into a valid contract. The contracts of the groups of people listed below involve problematic consent, and are dealt with separately, as follows:
- people who have a mental impairment;
- young people (minors);
- bankrupts;
- corporations (people acting on behalf of a company); and
- prisoners.
- Entering into a contract must involve the elements of free will and proper understanding of what each of the parties is doing. In other words, the consent of each of the parties to a contract must be genuine. Only where the essential element of proper consent has been given is there a contract which is binding upon the parties.
























