The Essentials of a Valid Contract

IV . The Essentials of a Valid Contract

Under the common law,a valid contract is an agreement that contains all of the essential elements of a contract. As students of business law well know, a contract contains a number of elements:

1. There must be an offer and acceptance: the agreement. If there is no agreement reached by the parties,of course there is no contract and no so - called valid contract.
2. There must be consideration (unless the agreement is under seal).
3. Certain types of agreement are only valid if made in a particular form, e. g. , in writ­ing.
4. The contract parties must have the intention to create legal relations.
5. The parties must have the appropriate capacity to contract.
6. There must be genuine consent by the parties to the terms of the contract, and the terms shall be clear and certain.
7. The contract must not have been concluded as a result of undue influence, duress or misrepresentation.
8. The contract must not contradict public policy or be otherwise illegal.
9. The contract must be capable of being performed.
10. The contract must not be frustrated by an intervening event.

The civil law countries have similar stipulations to that except for the legally sufficient con­sideration. If a contract missing any one of these essential elements,it is a void,voidable or un­enforceable contract. Some books only contain 4 or 5 points as the elements of a valid contract; the others are stated as the influential elements to a contract, which may make the contract to be voidable or unenforceable. As the most important parts in contract law,the essential elements of a valid contract as above - mentioned will be discussed' in details below.