Theory question 107
Law of ContractCommerce 2 (essay)
(a) What is a contract?
(b) List five elements of a valid contract
(c) Explain four ways by which a contract may be discharged.
Show the model answer
Model answer
(a) A contract is a legally binding agreement between two or more parties.
(b) Any five: offer; acceptance; consideration; capacity of the parties; intention to create legal relations; legality of object; genuine consent; certainty of terms; proper form where required.
(c) Any four, explained: performance; agreement; breach; frustration; operation of law (death, bankruptcy); lapse of time.
Explanation
Name each way of discharge and explain it briefly.