PowerPoint Presentation

[Audio] *Topic - Law of Contract* Question: What is the concept of a contract? Explain the essential elements required for the formation of a valid contract. Answer: A contract is a legally binding agreement between two or more parties that creates rights and obligations enforceable by law. The essential elements required for the formation of a valid contract are offer, acceptance, intention to create legal relations, consideration, capacity to contract, and free consent. An offer is a proposal made by one party to another, while acceptance signifies the unconditional acceptance of the terms of the offer. Intention to create legal relations means that the parties intend their agreement to be legally binding. Consideration refers to something of value exchanged between the parties, and it is a vital element for a contract to be enforceable. Capacity to contract ensures that the parties have the legal capacity to enter into a contract, and free consent means that the agreement must be entered into without coercion, undue influence, or fraud. Question: Explain the concept of consideration in a contract. How does it differ from a gift or a promise to make a gift? Answer: Consideration is an essential element in a contract and refers to something of value (such as money, goods, or services) exchanged between the parties to a contract. It distinguishes a contract from a gift or a promise to make a gift. Unlike a gift, which is given voluntarily without any expectation of receiving something in return, consideration involves a mutual exchange of benefits or detriments between the parties. A promise to make a gift lacks consideration because it does not involve any bargained-for exchange between the parties. In a contract, consideration is necessary to validate the agreement and create a legally binding obligation..