Contractual Agreements, Business Contracts, Business Lawyers
A contract is a legally binding agreement between two or more persons for a particular purpose. In general, contracts are always formed on the same pattern. A person offers to give another person something; to provide a service or to refrain from doing something. If the offer is accepted, the contract is then valid in principle.
A contract is, therefore an agreement that legally binds the parties to the agreement to do (or not do) what the contract stipulates. The essential elements of a contract are the offer, acceptance, and consideration.
Common law is the system of law that evolved from the decisions of the English royal courts of justice since the Norman Conquest (1066). Today the common law, considered more broadly to include statutes as well as decisions, applies in most English-speaking countries, including all Canadian provinces except Québec. Civil Law is the system of law that evolved from the Roman law compilations of the Emperor Justinian. Today it is found in countries of continental Europe as well as their former colonies and, in Canada, in Québec. Canadian common law and Québec civil law generally follow similar rules in this regard, that is a contract legally entered into represents a legal bond between the parties. Parties are free to contract whenever and for whatever reason they wish.
Five conditions that must be met for a contract to be legally binding
Mutual Consent
The first condition is that there should be mutual consent of both parties. In other words there must be an offer by one side and an acceptance of the offer by the person to whom the offer was made.
Contractual capacity
The second condition is the contractual capacity of both the parties. For a contract to be enforceable it must be between competent parties. All persons are legally authorized to enter into a contract except for the following:
• Minors, who are above 18 years of age,
• Mentally incompetent persons,
• Person who is ineligible from entering into the contract by law.
Purpose
The third condition is that the contract should have an object or a purpose; it must concern a specific and agreed-upon good or service.
Lawful Cause
The fourth requirement of a valid contract is that its provisions be legal. If a purported contract requires an illegal act, the result is a void contract. Parties to an illegal contract have no standing in court. If one party receives money or property under an illegal contract, the other may not sue to recover what was paid under the contract. Contracts to commit crimes or to engage in immoral acts are void.
Written formalities
The fifth condition, which is not required in all cases, is the compliance in certain circumstances to formalities provided by law such as, for instance, a valid written instrument.
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