Elements of a valid contract
The validity of a contract has a direct correlation with its legal enforcement. Courts are not only reluctant to enforce invalid contracts, but they lack authority due to the fact that illegality cannot be enforced. The law of contracts has empowered parties with the freedom to contracts as no law provides for the specific format of the agreement, but there are widely accepted ingredients as a matter of practice. They are offer, acceptance, execution, and attestation, consideration, capacity to contract, and intention to create a legal relationship.
Offer initiates the contract, and once an offer has been made, the offeror should give the offeree reasonable time to consider the offer. Similarly, acceptance is usually manifested after the offeree appends his signature to a contract, thus creating a legal relationship. Equally, consideration must clearly be indicated, leaving no doubt. It evidences the monetary value and gain of the contracting parties. By and large execution and attestation are crucial whereby signature appended to a contract give the effect that parties agree to be bound by the entire contents of the agreement. Only parties privy to a contract can legally enforce it.
Concept of breach of contract
Once a contract is duly executed, it brings forth a legal relationship. The agreement apportions, rights, duties, and obligations of each contracting party. Failure to perform a contract amounts to a breach of contract and allows the innocent party to exercise several rights even without court intervention. A good example being the right to rescind a contract where the breach goes to the root of the agreement.
Where a breach of contract has been caused by factors outside the reasonable control of the party expected to perform, or such was not foreseeable by a reasonable man, the breaching party will be legally excused from performance, and the innocent party will not be restituted. This can be a breach that arises out of an Act of God, precisely natural disasters and calamities.
Legal remedies available to a non-breaching contractual party
Various remedies would include a Claim for damages wherein it is compensation for damage suffered and usually exercised vide court action. Notably, damages would be tabulated by Court. Besides is another remedy and is undertaken mostly where breach goes to the root of the contract. By and large, an order for specific performance requires that the breaching party undertakes the specified action.