main elements constituting a vaild contract

main elements constituting a vaild cartelThe word virtue has been abandoned mevery definitions. The higher be is the state and the inferior being is the individual. The sanctions or punishments include imprisonment, fines, remediation and injunctions. In our country Malaysia, Federal Constitution decl atomic number 18s itself as the supreme impartiality of the Federation. Hence, to dapple it modestly, natural law may be defined as a organic structure of rules which atomic number 18 enforced by the state. Furthermore, law save from harm the base individual yetly-hand(a)s and freedom such(prenominal) as liberty, equality and freedom of speech. It block individuals in occasionful positions from taking an unreasonable advantage of some different hatful and ensures a harmless and peaceful society, in which individual rights ar conserved, law has develops as the norms and needs of society changes. Malaysia practices Parliamentary democracy with Constitutional Monarchy, wherein the Yang Di-Pertuan Agong (King) is the rife Ruler. The constitution of Malaysia divides the authority of the Federation into three branches, namely Legislative, Administrative or Executive and Judiciary.Definition for interrogate 1 extorts argon not exclusively applicable to business but argon as well part of our frequent life. A rack is make out of the simple act of purchase a newspaper, using a credit card to buy a dress or paying a parking fee. Other bids such as the sale and purchase of property argon additional complex, requiring dinner gown written documents. Law, is merely anxious with the fulfillment of veritable conditions by the parties so that the transactions can be standard as effectively covering symmetry and enforceable. part 2(h) of CA 1950 states that an reason enforceable by law is a embrace. The strongest compact, in cost of enforceability, has an leave, acceptance, consideration for the shift, clearly sets out the terms of the unders tanding without doubt, and is signed by the needd parties with appropriate capacity to assume into the require. Hence, a perplex can be defined as an agreement the law mingled with two or pre parties to do or to discontinue from doing some act/acts, their plan being to create licit likeness and not purely to exchange mutual s lay off for to give something of encourage as consideration for any benefits derived form the agreement. Thus each of the parties to a thin out wants or needs something the other troupe has in its power to give, and each of the parties is willing to give up something of in order to trade name safe what the other party has.Basic Elements of a Valid Contract an OverviewFrom the definition above, it may be concluded that the basis of a squash is agreement between parties. As such, the existence of other elements is also postulate to allow an agreement to transform into a experience and make it enforceable in law.For a logical occupy, the basic e lements that need to exist areAgreement (comprising stick out and acceptance) The existence of an offer and an acceptance are a means of analyzing the process of negotiation to decide whether a contract has been do and if so, when it was do. Mutual assent of the parties is the basic of an agreement. servant This is the value given by the parties for the assure that is being made. Usually consideration takes the form of capital, property and services. talent Only parties who bear capacity are able to project the insertion a valid and enforceable contract. Persons who are under age of remove serious mental disability do not have judicial capacity to enter into contract.Consent If the parties do not enter onto the agreement willingly, the agreement could be regarded as invalid. Genuine have into a contract can be affected by a number of issues. For examples, during the contractual negotiations, in that location may have beenUndue work onMistake as to the terms and identif y of the soulfulnessMisrepresentationUnconscionable conduct imprisonment or coercion.Certainty All the terms of a contract should be clear and precise such that the parties know that they are agreeing to. rectitude any agreement to violate the law or any agreement prohibit by law is void. Contracts are dirty for two reasons firstly, beca utilize their object is il effective secondly, because although the object is perfectly legal, the manner of making it is against the law.Figure of basic elements of a valid contractFormation of a contractCertaintyLegalityConsentIntention to create legal relationsCapacityConsiderationAgreementOfferAcceptanceAgreement, the parties mustiness agree on the rights and pact to be created under the contract. Agreement that is reached through a process of offer and acceptance is a primary part of any contact because it requires consents ad idem, the meeting of the minds of the parties ingoing into the contract. For example the model case was Affin Cred it (Malaysia) Sdn Bhd v mariner Yuen Fui (1984), the Federal Court held that where on that point was no offer and acceptance, the purported hire-purchased agreement was harbour void ab initio, and the agreement was void from the beginning. Thus it can be seen that agreement forms the basic of contract if there is no valid agreement to begin with, there can no be no valid contract at all. It is important that an agreement determine a contractual relationship, which means that it is essential for the parties to be able to define when an offer has been made and when the offer has been acknowledge. Offer proposal, also under the agreement, the psyche making the offer or proposal is called the promisor or offeror. The someone to whom the proposal or offer is being made to is recognized as the promisee or offeree. If this person accepts the offer, then he is also called the acceptor. An offer is referred to in s 2(a) of CA 1950 as a proposal which is made when one person signifies to some other his willingness to do or abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence.Acceptance, for a contract to be valid, there must be a proper acceptance by the offeree. Section 2(b) of CA 1950 provides that when by offeree signifies his assent to the offer, the offer is said to be accepted. Rules of a valid acceptance, if the acceptance of any promise is made in words, the promise is said to be express, and if the acceptance is made other than in words, the promise is said to be implied s 9, CA 1950.Intention to create legal relations, an agreement reached between an offeror and an offeree will be a lawfully binding contract only if the parties pin downed that they should be legally bound. The parties intention to be bound can be particular propositionally stated or be implied from their actions. Where intention is expressly stated, the taps would not impure otherwise unless there is strong evidence to prove the contrary. In social and domestic agreements between family and fri end ups, there is a presumption that these agreements are not meant to be legally binding unless the contrary can be proven. In Balfour v Balfour (1919), the husband went to work in Ceylon and hold to pay his wife 30 per month. He didnt pay the money and the wife sued. It was held that there was no contract because the parties didnt intend to create a legal relationship.In business and commercial agreements, which are more formal in nature there is presumption that there is intention to create legal relations. Also, the intention to exclude legal consequences must be see out clearly in unambiguous words. The hindrance of proof is on the party who alleges that no legal effect is intended. Edwardss v Skyways (1964), the plaintiff who was a pilot was made redundant by the defendant. Ha had been informed by his pilots association that he would be given an ex gratia payment. The defendant failed to pay to pilot sued. T he defendant argued that use of the words ex gratia. The court held that this agreement related to business matters and was presumed to be binding and the defendants had failed to controvert this presumption.Capacity to contract, in order to have a valid contract all parties to a contract must have capacity to enter into a contract. Capacity refers to the legal ability to go through into a contract and the law mainly assumes that everyone has capacity to contract except indisputable categories of persons. Section 11 of CA 1950 presents that every person is competent to contract who are of the age of majority according to the law to which he is relegate, of sizeable mind and not disqualified from contracting by any law to which he is subject.Certainty, agreements that are not certain in meaning or which the meaning is not capable of being made certain are void s 30, CA 1950. The terms of an agreement ought to obvious, precise and certain. It cannot be vague. An agreement which is ambiguous and uncertain is not capable of being accepted as a valid contract. In Karuppan Chetty v Suah Thiam (1916), the contract was declare void as the phrase to last for last long as he likes carries uncertain definition.Legality, even where all the requirements of a valid contract discussed above the present, a contract may be illegal and hence unenforceable. Section 24 of CA 1950 only provides that the following consideration and objects are unlawful such as, it is forbidden by law and nature as to beat any law. In addition, it is fraudulent and involves or implies injury to person or property of another and the court regards it as dishonest, or hostile to public policy. such agreements might be regarded as void.Consent, although all the elements of administration may be present rendering the contact valid, in certain circumstances if genuine consent is nit obtained, and then there can be no agreement and no contract between the parties. Even if consent is given, it may not have been freely given. Section 14 of CA 1950 states that consent is no free when it is result of coercion, undue influence, fraud, misrepresentation, and mistake.ConclusionIn this subject, I had learned a lot of legal things. At the end of this question, I had been search out to identify the essential elements required to contour a simple and valid contract, and the factors that can influence its validity and how to recognized when agreements has been legally binding. Its very effective for our future when we had starts a business.Definition of question 2Remedies that are existed for separate of contract would depend on the graveness of the effect and impact of the damp. The types of remedies that are available are such as rescission of contract, the contract is annulled and some(prenominal) sides are excused form further performance and any money advanced is returned. Secondly is the return, an equitable quantum of money is gainful to the plaintiff to compensate for an y loss. Thirdly goes to unique(predicate) performance, a court order requiring performance exactly as specified in the contract. This let off is unusual, except in real estate transactions and other unique property, as the courts do not want to get solve with monitoring performance. As a final point, injunction is a court order directing one party to perform or to end doing a certain act. It is used more than ever in situations where a monetary award for damages would not satisfy a plaintiffs hold or would not protect personal or property right from irreparable harm. A unbosom is very important and critical in the legal relations.RemediesWhat are remedies? Remedies are when a party to a contract unjustifiably fails to declines to perform his part of the contract the other party has a right of legal action. The methods which are given by the law to an gratis(p) party by which he may enforce a right or redress an injury are called remedies. Remedies that are available for snap off of contract would depend on the consequence and impact of the breach. Probable remedies are such as rescission of contract, damages, particularised performance, and injunction. Equitable remedies are generally remedies other than the payment of damages. This would include such remedies as obtaining an injunction, or requiring specific performance a contract.To begin with rescission of contract, on a breach of a condition of a contract, the injured party may make do the contract as at an end (or rescinded) and refused to perform or lend oneself his part of the contract. When one party to a contract has refused to perform, or change himself from performing his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance s 40, CA 1950. A person who rightly rescinds a contract is also authorise to damages under s 76, CA 1950.Next, are damages? Section 76 of CA 1950 provides that the inju red party or the party that has suffered loss has a right to compensation for the loss or dishonored suffered, payable to the breach of contract and the aim of damages is to put the destitute party into a position he would have been, had the contract been performed. Such as compensatory or ordinary damages, these are damages that are given to be party who has suffered loss caused by the breach of contract. The general position with regard to damages for breach of contract is that damages may be improved as long as they are not similarly remote. In the other words, damages might only be retrieve in the relevant losses for example arise course as a result of the breach or dont take place naturally but are losses which are parties knew, at the time they made the contract, would be probable result of the breach. This principle stems form the decision in Hedley v Baxendale (1854) and is also provided in s 74(1) of CA 1950. How many charitable of damages that under damaged? For examp le, exemplary damages, liquidated damages, and nominal damages, and so on. exit with the exemplary damages, these damages are damages that required and/or awarded by the court when the defendants willful acts were malicious, violent, oppressive, fraudulent, wanton, or grossly reckless. These damages are awarded both as a punishment and to set a public example. Although very much requested, exemplary damages are infrequently awarded. Next to liquidated damages, liquidated damages are monetary compensation whose amount the parties agree upon during the formation of a contract for the injured party to pull together as compensation if a specific breach occurs. Damages can be liquidated in a contract only if the injury is either uncertain or awkward to quantity, or it would be gruelling to prove the loss, or it would be difficult to find another adequate remedy. Hence, the amount is reasonable and is considered the actual or anticipated harm caused by the contract breach, and the dam ages are organize to function as damages, not as a penalty. Hence, of the above criteria are not met, a liquidated damages clause will be void. afterward that is turned to nominal damages. Nominal damages are damages which represent of a small amount of cash payment which the court orders to paid to the plaintiff who has suffered to quantifiable pecuniary loss. The award serves as a item of honor to the rights of the plaintiff. Nominal damages is habitually sought to obtain to legal record of who was at fault. particularized performance, specific performance is an equitable remedy. It is a specialized remedy used by the courts when no other remedy (such as money) will adequately compensate the injured party. In addition, specific performance is not a typical remedy. If a legal remedy will put the injured party in the position he would have enjoyed had the contract been fully performed, then the court will use that opportunity to instead. The most common courts grant specific perf ormance is that the subject of the contract is exclusive. For example, Donald offers to parcel out Belle his beachfront house and Belle accepts. Donald subsequently decides to keep the house. Since there is no other house exactly like Donalds house, Belle may be entitled to specific performance of the contract and the court may compel Donald to sell the house. Some more, specific performance is governed by the Specific Relief chip 1950. Section 11 of Specific Relief issue 1950 provides the circumstances when a court may grant specific performanceWhere the act agree to be done is in performance, wholly or partly, of a trust.These exists no standard for ascertaining the actual damage caused by non performance of the act agreed to be done.Where pecuniary performance is an inadequate relief.Where pecuniary relief cannot be obtained for the breach.Sections 20 and 21 of Specific Relief Act 1950 state that specific performance cannot be granted where damages are granted, the terms of th e contract are uncertain, there is evidence of fraud and the performance of the contract would involve hardship on the defendant.Injunction, an injunction is an order of the court restraining a person from doing a specific act in the future. It is granted only when it is just and equitable to do so having regard to all the circumstances of the case. Specific relief Act 1950, section 50 of Specific Relief Act 1950 provides that it is a preventive relief granted at the discretion of the courts. In respect of contracts, an injunction may be sought to prevent a party from committing a breach of contract. For example, the court may order that a seller be restrained from selling land to anyone else when the seller has promise to sell that land to the plaintiff. A court may award damages to an injured party either in addition to, or in substitution for, an order of injunction.Quantum meruit, quantum meruit determines the amount to be paid for services, when no contract exists (a doctor gi ving emergency aid), or where the parties to a contract have failed to agree on a price, and so on. If there is an existing contract for a stipulated amount and the mode of compensation for services, the plaintiff cannot abandon the contract and resort to an action for quantum meruit. For example, if a person sues for payment for services in such circumstances, the court will calculate the amount due establish on time and usual rate of pay or the everyday charge, based on quantum meruit by implying a contract existed.ConclusionFor the end of this question, I had learned about the significant and important of the remedies in the legal relations. In this question, I can find out and understand the exchange of benefits and obligations between the parties, which makes the agreement enforceable. Furthermore, students also can consider and evaluate the factors that influence the availability of compensation for losses suffered from breach of contractual obligations and identify the expo und remedies other than damages which may be available to the victims of a breach of contract.