All contracts are agreements but all agreements are not contracts. Discuss.

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Law Assignment

Table of Contents

Introduction 1

Essential Elements of a Valid Contract 3

Acceptance 4

Lawful Consideration 5

Adequacy or sufficiency of consideration. 5

Intention to create legal relations 7

Capacity to Contract 8

Contract for Necessaries 8

Form of contracts 10

Free consent 10

Mistake. 11

Agreement Expressly Declared as Void. 12

Overall Summary 13

Conclusion 15


Table of Cases


Case 2 (Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council). 3


Case 4 (Hyde v Wrench (1840) 4

Case 5 (POWELL V LEE (1908), 5

Case 6 (CURRIE V MISA ( 1875), 5

Case 7 (Chappell & Co. Ltd v Nestle Co. Ltd (1960) 6


Case 9 (SIMPKINS V PAYS (1955), 7

Case 10 (NASH V INMAN (1908) 9


Case 12 (IN BURNARD V HAGGIS (1863) 10



Recently, we were given an assignment for our course (Introduction to Law) and it is a group assignment. Well, the requirement of the assignment is to present a written assignment on the following topic which is “Not all agreements are contract

even though all contracts agreements” Based on the topic above I will discuss it based on essential elements constitutes and enforceable contract. How do we differentiate agreement and contract? We can discriminate it by the definition. What the definition of agreement and contract? According to Helen J.Bond & Peter Kay (1995), a contract is an agreement which legally binds the parties. Sometimes contracts are referred to as “enforceable agreements’ this is rather misleading since one party cannot usually force the other fulfil his part of the bargain. For the agreement, it is a form class reference between different parties, which maybe be used in written, oral and lies upon the honour of the parties for its accomplishment rather than being in any way enforceable For a contract to be formed an offer made must backed acceptance of which there much be in consideration. Both parties engage in must intent to form legal relation on a lawful matter which must be entered into freely and should be possible perform. The legal relation I explained it above is one of the crucial part of element of contract. There are some essential elements of a contract namely that an agreement is made as a result of an offer or acceptance. Besides, the agreement contains an element of value known as consideration, although a gratuitous promise is binding if it is made by deed. So, this is briefly what the differences between an agreement and contract is about. About the contract, it contract must be valid so that the contract will run smoothly. Sometimes, there are some factors may be affected the Validity of a contract.

There are the following factors for the validity of the contracts;

. Capacity. Some persons, e.g. children have limited capacity to make contracts.

2. Form. Most contract can be made verbally, but other must be in written or by deed. For certain verbal contracts must be supported with written evidence.

3. Content. The parties may basically agree any terms, although they must be reasonably precise express term may be overridden by statue.

4. Genuine consent. Misrepresentation, mistake, duress and under influence may invalidate a contract.

5. Illegality. A contract will be void if it is illegal or contrary to the public policy.

There are the possibilities of the factor that the contract will turn out void.

I will discuss more on the essential elements constitutes a valid and enforceable contracts.

The following cases indicates methods in which all the contracts are agreement bases on the Law;

In the situation of invitation to treat, where an invitation to treat is an offer must be carefully distinguished from an invitation to treat, which is an invitation to another person to make an offer. The main distinction between the two is that an offer can change into a contract with one condition which is acceptance, provided the other requirements of a valid contract to present, whereas an invitation to treat cannot be “accepted”. There are few types of invitations to treat:

. The exhibition of goods for sale in a shop. For example FISHER V BELLS (1961) Chapter 4 Paragraph 20.)



, where by statue certain drugs had to be sold in the presence of a qualified pharmacist. Boots operated a self-service shop, with a qualified pharmacist present at the check-out, but not at the shelves on which the drugs were displayed. The precise location of the place of sale was therefore relevant to determine whether or not an offence had been committed. It was held an invitation to treat, the customer’s tender of the drugs was the offer, and the taking out of the money by the pharmacist was the acceptance. The sale therefore took place at the check-out, and Boots therefore did not commit an offence.

An invitation for tenders

(Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council [1990],

There is another type of invitation to treat which is invitation to tender. This invitation to tender explained it above is about a tender is an estimate submitted in response to a prior request. An invitation for tender does not usually amount to an offer to employ the person quoting the lowest price. Most probably an exception may occur where tenders have been solicited from selected persons and the invitation to tender sets out a prescribed clear method. There is one case that pertinent to the invitation to tender. (Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council).

Case 2 (Blackpool & Fylde Aero Club Ltd v Blackpool Borough Council).

The council, who manage Blackpool Airport, intended to grant a concession to operate pleasure flights from the Airport. It sent invitations to tender to P and 6 other parties, all of whom were known to the Council. The invitation stated that tenders received after the last date would not be considered. P posted their tender in good time in the town hall letter-box, but this was not opened when it was supposed to be, consequently P’s tender arrived late and was excluded from consideration. P sued in contract and negligence. The contract highlight that were received in time. P succeeded, the court of Appeal holding that it was possible to have exceptions to the rule that invitations to tender were not contractual offers. This would apply where tenders are invited from known and selected persons under a clear prescribed procedure.
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There are some cases it is not clearly show what an invitation to treat is and what amounts to an offer. For example, Buses. It is probable that the bus itself is the offer (WILKIE V LONDON TRANSPORT (1947), since if the bus were an invitation to treat, and the passenger’s tender of the fare and offer, then a passenger could board a bus and, not having seen the conductor, get off again without being in breach of contract.


Essential Elements of a Valid Contract

A contract ...

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