Theory question 106
Law of ContractCommerce 2 (essay)
(a) What is a contract?
(b) List five elements of a contract.
(c) Explain six conditions that could lead to the termination of a contract.
Show the model answer
Model answer
(a) A contract is an agreement between two or more parties that is enforceable by law.
(b) Any five: offer; acceptance; consideration; capacity; intention to create legal relations; legality; genuine consent; proper form.
(c) Any six, explained: performance; mutual agreement; breach; frustration (impossibility); death or insanity of a party (personal contracts); bankruptcy; lapse of time; operation of law/illegality.
Explanation
Explain each termination condition briefly.