Principles of
Contract
Business Law Topic 2
,Formation of a valid
contract
If a contract is invalid, it is void (no longer exists)
For a contract to be valid parties must:
1. Have contractual capacity
2. Have serious intention to contract
Offer & Acceptance
3. Communicate their intention to each other
4. Have no misunderstandings
5. Agreement must be lawful
6. Performance of contractual obligations must be
possible
7. Agreement must comply with all formalities
required by law for that kind of contract
8. Agreement must be certain in its terms
, Contractual
Capacity
Section 1
Contract
Business Law Topic 2
,Formation of a valid
contract
If a contract is invalid, it is void (no longer exists)
For a contract to be valid parties must:
1. Have contractual capacity
2. Have serious intention to contract
Offer & Acceptance
3. Communicate their intention to each other
4. Have no misunderstandings
5. Agreement must be lawful
6. Performance of contractual obligations must be
possible
7. Agreement must comply with all formalities
required by law for that kind of contract
8. Agreement must be certain in its terms
, Contractual
Capacity
Section 1
