BUSINESS LAW UNIT 1: Essentials of a valid contract
(Visit my youtube channel "RKD Commerce and Arts Coaching") B. Essentials of a valid contract - Offer and acceptance, consideration, contractual capacity, free consent, legality of objects. Question 2. Discuss the essential elements of a valid contract. Answer: Essential Elements of a valid Contract: 1 . Offer and Acceptance : There must be a “lawful offer” and a “lawful acceptance” of the offer, thus resulting in an agreement. 2 . Intention to create legal relation : There must be an intention among the parties that the agreement should be attached by legal consequences and create legal obligations. Social agreements do not contemplate legal relations, and so they do not give rise to a contract. 3. Lawful Considerations : An agreement is legally enforceable only when each of the parties to it, give something and get something. This something is the price...