Building Law

In: Other Topics

Submitted By Boesman
Words 678
Pages 3
1 (a)
• Both parties had the intention to enter into a contract. The intention does not need to be expressed in writing – it can be inferred from one party’s words or actions.
• All contracts must include an offer and its acceptance. So I have received 3 quotes from 3 plumbers for work of a large house I am building under a contract with the owner.
• A contract is formed with my acceptance of the offer. If any new terms or conditions introduced not covered in the offer will be a counter-offer. There is also a postal acceptance rule that the contract is complete once the plumber places the acceptance in the mail. Acceptance may be spoken, written or inferred from conduct. I have accepted plumber A’s price by telephone and without written confirmation, but I made a note in my files that I have done so. Plumber A reinforced/acknowledge this agreement by starting work on site. So there can be no argument that there is no contract.
• Valuable consideration is the element that shows the parties intend to be bound by their agreement. There is a valuable consideration as I agreed on the price Plumber A submitted. Consideration can be regarded as the ‘price of a promise’, but consideration must be something of value and may take various forms as stated in Currie v. Misa (1875).
• Capacity of the parties is that the enforcement of a contract depends on the parties possessing recognised and legal capacity. Their ability to contract must be free of particular limitations. Examples of Contractual limitations are placed on the following: Minors, Persons of unsound mind, Bankrupts and Companies.
• There must be Genuine Consent otherwise it may invalidate the contract. Genuine consent may be absent where there is misrepresentation, mistake or duress or undue influence. I knew about a $40,000.00 error, but did not tell Plumber A about this discrepancy. This is…...

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