Agreement in Common Law: How Contracts Are Formed
In common law, an agreement is the foundation of a contract. It is the meeting of the minds of two or more parties, creating mutual promises or obligations. Without agreement, there is no contract, and hence no legal obligation between the parties.
There are several essential elements that must be present for an agreement to be considered a contract in common law. These elements include:
1. Offer: An offer is a proposal made by one party to another, indicating a willingness to enter into a contract on specified terms. The offer must be clear, definite, and communicated to the other party.
2. Acceptance: Acceptance is the unequivocal expression of agreement by the offeree to the terms of the offer. The acceptance must be communicated to the offeror and must be in accordance with the terms of the offer.
3. Consideration: Consideration is the exchange of something of value between the parties. It can be money, goods, services, or anything else of value. Consideration is what makes the agreement binding and creates a legal obligation between the parties.
4. Intention to create legal relations: The parties must have an intention to create a legal obligation between themselves. This means that the agreement must not be a mere social arrangement or a statement of intention.
5. Capacity: The parties must have legal capacity to enter into the agreement. This means that they must be of legal age, of sound mind, and not under duress or undue influence.
Once an agreement has been formed, it is enforceable under common law. If one party fails to fulfill its obligations under the agreement, the other party has the right to seek legal remedies, including damages, specific performance, or termination of the contract.
In conclusion, agreement is the foundation of contract law in common law jurisdictions. It is the meeting of the minds of the parties that creates mutual obligations and legal rights. By ensuring that the essential elements of offer, acceptance, consideration, intention to create legal relations, and capacity are present, parties can create enforceable contracts under common law.