In order to create a legally binding relationship between you and Davina , a contract is required to ensure that Davina will not be able to renege the agreement . This report will offer you advice by introducing you what the law of contract is , what it means and how it relates to your case . It includes the definition of a contract , pre contract negotiation and particularly focuses on the essentials of a contract , terms of a contract. And finally remedies will be introduced if the breach happens .
1. What is a contract ?
According to Bhana, Bonthuys, & Nortje (2009 , p .2) , ‘ contract are agreements between parties who have the intention to create legal rights and duties between them and which are legally binding upon parties ’. There are some key factors in defining a contract. First of all , a contract is a legal binding of obligation , which is ‘a legal tie or relationship ’ between two or more parties and involves both right and duty (Bhana,Bonthuys & Nortje ,2009 ,p . 2 ) . Besides, agreement is also crucial in defining a contract , as agreement is ‘ a requirement for the valid formation of a contract ’(Bhana, Bonthuys & Nortje ,2009 ,p . 24 ). Additionally , whether or not an agreement is a contract is not decided by its formalities. A contract is not necessary in written form that ‘a verbal, and even a tacit (silent) contract is just as valid as a written one’( Bhana, Bonthuys & Nortje ,2009 ,p . 17 ). Thus , a contract is defined by its content not its formality . The essentials of a contract includes offer , acceptance , consideration and intension (Adams , 2008) , which will be further explained in the following section .
2. Pre contract negotiation
Normally , it is expected to have a lengthy negotiation before a contract is formatted ( Adams , 2010), during which different parties communicate with each other about contents and terms of a contract ,such as price ,period , assignments and so on , in order to reach a final agreement. Statements in negotiations is easy to be confused with a legal binding offer , which may lead to dispute between parties when one party mistake the other party’s statement as an offer and accept ( Adams ,2010 ) .Actually , it depends on whether ‘ the alleged offeror had by that point indicated a sufficient intention to be bound ’ ( Adams , 2010 , p . 67) . Statements made in early stage of negotiation can hardly be taken as a legally valid offer ( Adams ,2010 ). Accordingly , with respect to your case , you need to make sure whether the agreement between you and Davina is a statement of negotiation or a legally binding offer.