5 Questions
Explain the importance of a written contract in the formation of an agreement.
A written contract is important as it serves as evidence of the terms agreed upon by the parties, helps in avoiding disputes, and provides clarity and certainty regarding the rights and obligations of the parties involved.
What are the essential conditions of a valid offer (proposal)?
The essential conditions of a valid offer include an intention to create legal relations, certainty and completeness of the terms, communication of the offer to the offeree, and the offer must be made with the intention of obtaining the assent of the offeree.
What is meant by 'communication of acceptance' in the formation of an agreement?
Communication of acceptance refers to the act of conveying the acceptance of an offer by the offeree to the offeror. It is essential for the acceptance to be effectively communicated to the offeror in order to create a binding agreement.
Explain the concept of 'revocation of proposal' in the context of contract formation.
Revocation of proposal refers to the withdrawal of an offer by the offeror before it is accepted by the offeree. Once the revocation is effectively communicated to the offeree, the offer ceases to exist and cannot be accepted.
What is the significance of consideration in the formation of a valid contract?
Consideration is the price paid by one party for the promise of the other. It is essential for the formation of a valid contract as it signifies that each party is giving something of value in exchange for the promise of the other, thus making the contract legally enforceable.
Test your knowledge of contract essentials with this quiz covering the importance of written contracts, types of contracts, and the formation of agreements through offers and acceptance. Explore the key elements and legal obligations involved in creating valid contracts.
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