Contract Law Flashcards, test questions and answers

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What is Contract Law?

Contract law is a body of law that governs agreements between parties in which the terms and conditions of an agreement are outlined. It is composed of several different elements, including offer and acceptance, consideration, capacity, intention to create legal relations, certainty and legality. Contract law can be both civil (involving the legal relationship between two or more private individuals) and public (involving the state or public authorities). In order for a contract to be legally enforceable it must meet certain conditions. Firstly, there must be an agreement between two or more parties in which each party has given their consent to something. This is known as ˜offer and acceptance’ one party offers something (e.g. goods or services) while the other accepts it on certain terms. Secondly, there must be consideration some form of payment or exchange provided by one party in return for the goods/services provided by the other party. Thirdly, both parties must have capacity to enter into a contract i.e., they should have reached a certain age and have mental capacity to understand what they are doing when entering into a contract. Fourthly, there must be an intention to create legal relations this means that both parties should expect that their agreement will result in legally binding obligations upon them if certain conditions are met (usually set out in writing). Fifthly, all terms included within the contract must be certain i.e., not vague or open-ended – so that both parties fully understand them before agreeing to them; this helps prevent any misunderstandings later down the line which could then lead to disputes over what was agreed upon originally. Finally, all contracts should comply with all applicable laws; failure to do so may result in penalties or even invalidation of such contracts altogether. Contract law is an essential part of our society since it enables people from different countries/territories/regions with different cultures and backgrounds to agree on expectations between themselves so as not only protect but also benefit from each other’s services/goods when engaging with them commercially/economically speaking. It also provides recourse for those who feel they have been wronged by another party who has broken their contractual obligations; such instances can quickly become complicated matters requiring expert advice from qualified professionals knowledgeable about contract law.