A contract can be described as an agreement that is formed between the parties regarding the activity of selling, trading and such a contract when it became enforceable by law became a contract. There are many business organisation who shall look forward to make a deal or an agreement with another party or there may be situation in which the organisation or an individual may possess an interest to form a contract between the parties in that case contract law shall prevail over the party(Marks, Marks, Jackson, 2013).
There are many kind of laws which are enacted by the government to ensure that the rights and the duties shall get protected out of contract law shall protect the duties and right of the party binding themselves into a contract. The following project will showcase all the important provision which is related in the formation of a contract. The aim of the project is to create a better understanding about legal aspects of the contract with relation to business.
1.1 Essential Elements of Contract
When the contract is being formed between the parties then it is very much important that all the essential elements are to be included. When the contract is formed without essential element then such contract is titled as void. Whenever a void contract is being formed between parties then either of them have the rights to seek remedies from the court of law. Some of the essential elements which are required for the formation of a valid contract are:-
Offer: an offer to a contract can be when one of the party propose an idea which will create an interest to enter into an agreement by the other party(Friedman, 2011). An offer is the first and foremost step towards formation of a contra t as it will show intention of party to enter into a contract.