Essential Elements for Formation of Contract in UK and Invitation to Treat Free Essay Example, 5000 words

This essay explores the essential elements for the formation of the contract in the UK and invitation to treat . Intention to create a legal relation: Schwartz and Scott concluded that the foremost need of establishing a contract is the will to create a legal relationship between the parties to the contract. The parties to the contract should abide the legal aspects associated with the process of developing a contract. For instance, the contract should be written and must reflect a clear offer and acceptance of the offer. Lawful Consideration: Consideration in a contract refers to the factor which obliges the parties to fulfill the contract. According to Schlanger, consideration can be defined as the value which is received by the parties to the contract on the fulfillment of the contract. The consideration in case of James and Jenny has focused on the services and benefits to be gained on the completion of the contract. The consideration for James will be final amount to be receiv ed from Jenny, while Jenny receives the press in return for her money. A capacity of the parties: According to the Contract Act 1999, the parties to the contract must be able to participate in the legal affairs and should be permitted by the policies of the nation to enter a contract. We will write a custom essay sample on Essential Elements for Formation of Contract in UK and Invitation to Treat or any topic specifically for you Only $17.96 $11.86/page The invitation made to Ann by James for selling the office computer can be referred in this relation. Although Ann accepted the offer she also revoked and thus Ann was not necessarily bound by the offer. The invitation to treat only signifies the offer that is being made to the intended group and can be aimed at an individual or be an open offer to be accepted by anyone. Legal contracts are based on various terms and conditions which form the basic layout of the contract and also include the legal obligations of the parties to the contract. The diversities in these terms and conditions often results in disputes created or incompleteness of the contract.