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Contract - Wikipedia. A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement.

Contract is a branch of the law of obligations in jurisdictions of the civil law tradition. Contract law concerns the rights and duties that arise from agreements.[1]A contract arises when the parties agree that there is an agreement. Formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound. Each party to a contract must have capacity to enter the agreement.

Minors, intoxicated persons, and those under a mental affliction may have insufficient capacity to enter a contract. Some types of contracts may require formalities, such as a memorialization in writing. Formation[edit]At common law, the elements of a contract are offer, acceptance, intention to create legal relations, and consideration. Not all agreements are necessarily contractual, as the parties generally must be deemed to have an intention to be legally bound. A so- called gentlemen's agreement is one which is not intended to be legally enforceable, and which is "binding in honour only".[2]Offer and acceptance[edit]In order for a contract to be formed, the parties must reach mutual assent (also called a meeting of the minds).

This is typically reached through offer and an acceptance which does not vary the offer's terms, which is known as the "mirror image rule". An offer is a definite statement of the offeror's willingness to be bound should certain conditions be met.[3] If a purported acceptance does vary the terms of an offer, it is not an acceptance but a counteroffer and, therefore, simultaneously a rejection of the original offer. The Uniform Commercial Code disposes of the mirror image rule in §2- 2. UCC only governs transactions in goods in the USA.

As a court cannot read minds, the intent of the parties is interpreted objectively from the perspective of a reasonable person,[4] as determined in the early English case of Smith v Hughes [1. It is important to note that where an offer specifies a particular mode of acceptance, only an acceptance communicated via that method will be valid.[5]Contracts may be bilateral or unilateral. A bilateral contract is an agreement in which each of the parties to the contract makes a promise[6] or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $2. These common contracts take place in the daily flow of commerce transactions, and in cases with sophisticated or expensive precedent requirements, which are requirements that must be met for the contract to be fulfilled.

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Less common are unilateral contracts in which one party makes a promise, but the other side does not promise anything. In these cases, those accepting the offer are not required to communicate their acceptance to the offeror. In a reward contract, for example, a person who has lost a dog could promise a reward if the dog is found, through publication or orally. The payment could be additionally conditioned on the dog being returned alive. Those who learn of the reward are not required to search for the dog, but if someone finds the dog and delivers it, the promisor is required to pay. In the similar case of advertisements of deals or bargains, a general rule is that these are not contractual offers but merely an "invitation to treat" (or bargain), but the applicability of this rule is disputed and contains various exceptions.[7] The High Court of Australia stated that the term unilateral contract is "unscientific and misleading".[8]In certain circumstances, an implied contract may be created. A contract is implied in fact if the circumstances imply that parties have reached an agreement even though they have not done so expressly.

For example, John Smith, a former lawyer may implicitly enter a contract by visiting a doctor and being examined; if the patient refuses to pay after being examined, the patient has breached a contract implied in fact. A contract which is implied in law is also called a quasi- contract, because it is not in fact a contract; rather, it is a means for the courts to remedy situations in which one party would be unjustly enriched were he or she not required to compensate the other. Quantum meruit claims are an example. Invitation to treat[edit]Where something is advertised in a newspaper or on a poster, this will not normally constitute an offer but will instead be an invitation to treat, an indication that one or both parties are prepared to negotiate a deal.[9][1. The Carbolic Smoke Ball offer. An exception arises if the advertisement makes a unilateral promise, such as the offer of a reward, as in the famous case of Carlill v.

Carbolic Smoke Ball Company,[1. England. Carbolic, a medical firm, advertised a smoke ball marketed as a wonder drug that would, according to the instructions, protect users from catching the flu.

If it did not work, buyers would receive £1. Watch The Woods Online Flashx. When sued, Carbolic argued the advert was not to be taken as a serious, legally bindingoffer; instead it was "a mere puff", or gimmick. But the court of appeal held that it would appear to a reasonable man that Carbolic had made a serious offer, and determined that the reward was a contractual promise. Although an invitation to treat cannot be accepted, it should not be ignored, for it may nevertheless affect the offer.

For instance, where an offer is made in response to an invitation to treat, the offer may incorporate the terms of the invitation to treat (unless the offer expressly incorporates different terms). If, as in the Boots case,[1. Auctions are governed by the Sale of Goods Act 1. A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in other customary manner.

Until the announcement is made any bidder may retract his bid”. Intention to be legally bound[edit]In commercial agreements it is presumed that parties intend to be legally bound unless the parties expressly state the opposite as in a heads of agreement document. For example, in Rose & Frank Co v JR Crompton & Bros Ltd an agreement between two business parties was not enforced because an 'honour clause' in the document stated "this is not a commercial or legal agreement, but is only a statement of the intention of the parties". Watch Dazzle Online Dazzle Full Movie Online there. In contrast, domestic and social agreements such as those between children and parents are typically unenforceable on the basis of public policy.