Free consent is another essential element of a valid contract. Formation of a Valid Contract. Objectives of an agreement should be lawful. As the manager of the hotel I will perform the duty according to the legal requirements in any case. As per the section 3 of the Contracts law 1999, the promissory may save her in this case. However, according to the Section 2 of the Contract Law 1999, the third party that is Richard may apply that the liability of this loss lies entirely with the manager Emma. If you continue browsing the site, you agree to the use of cookies on this website. Lawful Object. These elements should be present in a contract to make it a valid contract. 1.2 Essentials of a Valid Contract Now let us discuss the various essential elements of a valid contract. The contract would be void in case of mutual mistakes. Essentials of a valid contract 1. The terms that will bind the parties are included here. CASE STUDIES. 1b) Case study. Instantaneous mode ... intothe contract must intend to create legal relations andmust understand that the agreement canbe enforced by law.Case Law: In Balfour V. Balfour, a husband promised to paymaintenance allowance every month to … To provide the students with a thorough understanding of the essential elements of a valid contract in South African law. To assist students in being able to identify and solve authentic legal problems with regard to the negotiation and creation of contracts. When consent is obtained by unfair means, the contract would be voidable. If anyone of them is missing that agreement cannot be treated as a valid contract. 29 December 2014 By: Naveen Singhvi 34 Balfour vs Balfour. In the first case the Contracts Law 1999 and the Sale of Goods act 1979 may be used. In the case of advertise holiday booking the following legal positions will come into effect. 90 Elements of a Contract •In an offer and acceptance, the party who initiates, or makes the offer, is known as the offeror; the party to whom the offer is made is known as the offeree. LEGAL PURPOSE : OVERVIEW o If the object of an agreement is the performance of an unlawful act, the agreement is unenforceable. Where parties to contract do not intend to create binding agreement, the agreement cannot be enforced. In the postal rule the contact is complete when the acceptance is send. An agreement must have been made by free consent of the parties. In terms of Section 10 of the Act, “all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void”. The case of balfour vs balfour is a well known illustration of a domestic agreement. Postal rule. •In valid contract offers, there must be serious intent on the part of the offeror. … Three requirements must be met before a contract is valid: 1. valid contract and essential elements of essential contracts Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. #2 Contract I: essential features of a contract KKey factsey facts Offer and acceptance are the fi rst stages in establishing an agreement that may form a legally binding contract. Essential Elements for Valid Contracts Contracts that meet all legal requirements are valid and enforceable, which means that either party can hold the other party responsible for his or her agreement. o A contract would be valid only if the object and the consideration are legal. To familiarise students with legal concepts and terminology commonly In this case a husband (Mr. Balfour) was working in ceylone. 5. This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional. Free Consent Introduction: Sec 10 of contract act states "All agreements are contracts, if they are made by the free consent of parties".In order to make a valid contract it is necessary that there should be (a) Consent and (b) Free Consent.For the formation of a contract the parties should either have assented, or be deemed to have assented, to the same thing in the same sense.