Q1: What are the essentials of a "Valid Contract" Discuss?

This essay hasn't yet been marked by one of our teachers

You can view 4 essays on Contract Law that have been Marked by Teachers

The first 200 words of this essay...

Q1: What are the essentials of a "Valid Contract" Discuss?

A contract is made up of a promise of one person to do a certain thing in exchange for a promise from another person to do another thing. Contract law exists to make sure that people keep their promises and that if they do not, the law will enforce it upon them.

Contract law is based on several Latin legal principles, the most important of which is consensus ad idem, which means a meeting of the minds between the parties or, in other words, a clear understanding, offering and acceptance of each person's contribution. Lawyers say that it is from the moment of " consensus ad idem" that a contract is formed and may be enforced by the courts.

So a contract requires an agreement between the parties. But not all agreements are contracts.

The general law of contract in Pakistan is contained in the Contract Act 1872. English decision's (where relevant) are also cited in the courts. The Act defines "contract" as an agreement enforceable by law. The essentials of a (valid) contract are:

1. intention to create a contract;