1. The common law governs all contracts except when it has been modified or replaced by statutory law or administrative agency regulations. a. True b. False 2. Contract law is designed to provide and for both buyers and sellers by assuring the agreement will be enforced. 3. Contract law is unnecessary to ensure compliance with a promise, or to entitle an innocent party to some form of relief. a. True b. False 4. A contract is an agreement . 5. The element of is of key importance in determining if a contract has been formed. Intent is determined by the theory of contracts. Fill in the blanks with words that would best complete the passage. intent objective promise surprise subjective 6. The intent of the parties may be determined by evaluating what the parties said, how the parties acted, and: a. the circumstances surrounding the transaction. b. the age of the parties involved in the transaction. c. the amount of money at stake in the transaction. 7. The requirements for a valid contract include which four of the following

Question 1

True. The Law of Contract is largely governed by common law principles. The elements of a valid contract must include an offer, acceptance, consideration, and in some cases, an intention to enter into legal relations. To also determine the validity of a contract, parties must have the capacity under the law to enter into a contract. However, not all contracts can enjoy the common law as it can be replaced by statutory law or administrative agency regulations depending on the circumstance.

Question 2

Contract law is designed to provide stability and predictability for both buyers and sellers by assuring the agreement will be enforced.

A Contract is an agreement between two or more parties which creates a binding obligation to do a thing or not. For a contract to be valid, there must be mutual agreement and intention.  The law of contract can be seen in all spheres of human activity. Once two people agree to enter into a contract, they agree to be bound by it and can be enforced by law.  The essence of the law of contract is to ensure order, peace, and security between parties.

Question 3

False. Contract law is very necessary to ensure compliance with a promise or to entitle an innocent party to some form of relief. A contract is a promise or set of promises that can be enforced by law. The law will identify the legal rights and duties of the parties to ensure all obligations are met as stated in the agreement. In a commercial transaction, for instance, the law will not permit a promisor to go against his promise without ensuring that he pays compensation for damages.

Question 4

That can be enforced in court.

The agreement can be enforced by approaching the Court to seek redress. The Court will then examine the agreement to determine if the valid elements are present i.e offer, acceptance, and consideration. It must be noted that a written agreement carries more weight than an oral contract. This because the court can easily readily through the written contract. In an oral contract, it is hard to prove what truly transpired between parties.

Question 5

The element of Intent is of key importance in determining if a contract has been formed. The intent is determined by the theory of contracts.

For a contract to be valid, there must be an intention. An intention to enter into a legal agreement and an intention to be legally bound. Both parties entering into the contract must be competent parties in the eye of the law. They must have the necessary attributes to be identified by law as competent. When an offer is made from one person to another, it must be accepted by the other party as this shows intention. The test applied to whether parties intend to enter into a legal relation is objective.

Question 6

A. The circumstances surrounding the transactions.

For the purpose of considering the presence of intention in an agreement, the surrounding circumstance of transactions must be considered. Transactions such as commercial agreement, social & domestic engagements, and intermediate situations. However, the law will usually presume the presence of a contractual agreement until proven otherwise.

Question 7

capacity, consideration, agreement, legality.

Capacity- Generally, contracts are binding and enforceable in the court of law. However, a contract may not be enforceable against certain categories of persons namely;  infants, Illiterates, lunatics, drunks, etc. Contracts entered into with these categories of persons are void or voidable.

Consideration- For a party to be entitled to bring an action on an agreement, he must demonstrate that he contributed to the agreement. This contribution is called Consideration.

Agreement- An agreement is an understanding between two or more parties.

Legality- Legality, as the name implies, means an action or a thing in accordance with law. Contracts entered into should, therefore, be in accordance with the law.