Importance of Business Contract Law and its Implementation Assignment

Importance of Business Contract Law and its Implementation - Assignment Example Various lawyers and accountants provide their services both as employees and independent contractors. Essentials of a Contract The first essential of a valid contract is a valid offer. An offer is a clear statement of terms on which a party is ready to do business. It becomes valid when it is free from any ambiguity, communicated to the offeree, and not a counter-offer. The next element is acceptance. The acceptance must be a mirror image of the offer, communicated to the offeror, must not be subject to a condition, and must not have any new terms. Otherwise, it becomes a counter-offer. Communication can be through speech, conduct, writing, or by any reasonable method. Otherwise, it is not valid and there is no contract. The third important element is a consideration. It has been defined as â€Å"a benefit to one party or a detriment to the other† in Currie v Misa2. It must not be passed, must move from the promisee, must be sufficient, must not be something the promise is leg ally bound to do and must be legal. The fourth element is the intention of the parties involved to be legally bound. If there is no such intention, there is no contract but a social agreement. When these four conditions are fulfilled, a valid contract is formed. Types of Contract A contract that is formed by just oral agreement and nothing is put into writing is called a verbal contract. For contracts, being in writing is not an essential part and they are still enforceable by law. A written contract is a contract put in writing. It is also enforceable by law. It is difficult to enforce a verbal contract as it becomes almost impossible to provide a proof upon which a decision can be based on. When a contract is in writing, it is easy to prove and enforce. Another type of contracts is made in deeds. A deed is a written instrument used to convey the title or interest in a real estate. Relating mostly to land law, deeds can be regarded as written agreements.