Contractual and Non Contractual Liability

Topics: Contract, Tort, Common law Pages: 4 (1294 words) Published: June 10, 2013
Contractual and Non-contractual Liability

I. Contract
A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them. The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchange "consideration" to create "mutuality of obligation." Contracts may be bilateral or unilateral. A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller's promise to deliver title to the property. These common contracts take place in the daily flow of commerce transactions, and in cases with sophisticated or expensive promises may involve extensive negotiation and various condition precedent requirements, which are requirements that must be met for the contract to be fulfilled. Less common are unilateral contracts in which one party makes a promise, but the other side does not promise anything. In these cases, those accepting the offer are not required to communicate their acceptance to the offeror. In a reward contract, for example, a person who has lost a dog could promise a reward if the dog is found, through publication or orally. The payment could be additionally conditioned on the dog being returned alive. Those who learn of the reward are not required to search for the dog, but if someone finds the dog and delivers it, the promisor is required to pay. Elements

At common law, the elements of a contract are offer, acceptance, intention to create legal relations, and consideration. Offer and acceptance
In order for a contract to be formed, the parties must reach mutual assent. This is typically reached through offer and an acceptance which does not vary the offer's terms, which is known as the "mirror image rule". If...

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Stanovich, C. F. (2002, May). Contractual Liability and the CGL Policy. Retrieved from International Risk Management Institute Web site:
Tort. (2010, August 19). Retrieved from Cornell University Law School Web site:
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tort liability. (n.d.). Retrieved from Business Dictionary Web site:
W., C. (n.d.). Explain Contractual Liability. Retrieved from Reference Web site:
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