Contract in United Kingdom

Definition of Contract

In accordance with the work A Dictionary of Law, this is a description of Contract :

A legally binding agreement. Agreement arises as a result of *offer and *acceptance, but a number of other requirements must be satisfied for an agreement to be legally binding. (1) There must be *consideration (unless the contract is by deed). (2) The parties must have an intention to create legal relations. This requirement usually operates to prevent a purely domestic or social agreement from constituting a contract (See also honour clause). (3) The parties must have *capacity to contract. (4) The agreement must comply with any formal legal requirements. In general, no particular formality is required for the creation of a valid contract. It may be oral, written, partly oral and partly written, or even implied from conduct. Certain transactions are, however, valid only if effected by deed (e.g. transfers of shares in British ships) or in writing (e.g. promissory notes, contracts for the sale of interests in land, and guarantees that can at law only be enforced if evidenced in writing). (5) The agreement must be legal (See illegal contract). (6) The agreement must not be rendered void either by some common-law or statutory rule or by some inherent defect, such as operative mistake (See void contract). Certain contracts, though valid, may be liable to be set aside by one of the parties on such grounds as misrepresentation or the exercise of undue influence (See voidable contract).

The legitimate Transactions of Company Promotion

Pre-incorporation contracts

Find under this subsection information about Pre-incorporation contracts in relation to The legitimate Transactions of Company Promotion.

Definition of Contract

A legally binding agreement.

Definition of Exchange Of Contracts

This is the formal process of exchanging contracts.

Contract in the Context of Mortgages

Similar Terms

Breach of contract

Breach of contract

The failure to perform provisions of a contract without a legal excuse.

Contract for deed

Contract for deed

A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.

Contractual liability

Contractual liability

The terms of a contract to which you must abide. There may be financial or even criminal penalties which you incur if if you do not meet your contractual liabilities.

Resources

See Also

Contractual lien