Requirements of a Legally Binding Contract Under English Law

1. REQUIREMENTS OF A LEGALLY BINDING CONTRACT UNDER ENGLISH LAW

Introduction

A contract is an agreement between two or more entities that is enforceable under the laws of contract in case of any breach or performance thereof. So as to create a contract that is legally binding, there must exist an agreement between two or more entities.  As per existing principles, this is made possible by an offer made in clear terms together with a correspondingly explicit acceptance.  There also must be a purpose to make legal relations manifest plus consideration must also be perceived (Burrows 2016). Thus there are four crucial elements that are needed to have a legally binding contract under the provision of English laws herein there ought to be an offer, an acceptance, the intent to create a legal obligation and the existence of consideration.

1. Offer

An offer is the manifestation of preparedness to enter into a contract on stated terms, created with an aim to be bound once accepted by the party to whom it is communicated to (Stover v Manchester City Council [1974] 1 WLR 1403). There must be the evidence of an objective expression of intention by the offeror to be legally bound by the said offer if approved by the other entity. As a result, the offeror is then bound either orally or by conduct if in such a way to convince a rational person to believe that the party aims to be bound, even though they may not have this intention (Moran v University College Salford (No 2), The Times, November 23, 1993).

1. Acceptance

An acceptance is recognized as an absolute and categorical manifestation of consent to the terms of the offer. An offer ought to be accepted as per the specific terms if it is meant to create a contract. It should accurately be identical to the offer besides it should be accepted in its entirety either by or in writing. Thus, upon acceptance according to the aforementioned perquisites, then the basis of a contract has thus been formed but this only is not enough to foster legal obligations just yet.

1. Consideration

Consideration is basically a thing of value that is offered for a promise plus is necessary so as to ensure that the promise can be enforced as a valid agreement. This can conventionally be some loss to the promisee for the reason that he has to give value as well as some profit to the promisor for the reason that he is the one receiving the ‘thing’ of value (Currie V Misa (1875) LR 10 Ex). Even though a promise bears no votive power, unless some worth has been extended for it, consideration does not have to be sufficient. Courts of law do not, by and large question if sufficient value has been extended in the view of there being any fiscal equivalence concerning the worth of the consideration extended as well as the worth of any goods or services that have been given.  This is for the reason that the court does not typically impede with the bargain agreed upon by the entities privy to the contract. In view of that, minimal consideration is adequate. Customarily, an individual to whom a promise was extended, has the ability to impose it only if they were able to offer the consideration for it.

1. Intent to create legal obligations

A contract, even if it is reinforced by consideration, it still cannot be considered as a binding one if it was entered into devoid of the intent to form legal obligations. This in essence means, the entities privy to a contract need to anticipate the contract to be legally enforceable and create legal relations between them.  The burden of refuting this presupposition is on the entity who declares that no legal consequence was anticipated (Edwards v Skyways Ltd [1964] 1 WLR 349). In Balfour v Balfour, the husband worked overseas and pledged to give the wife a stipend of £30 monthly.  The spouse's effort to impose this promise was unsuccessful for the reason that the court held that the husband and wife did not expect the agreement to be legally binding besides also not extending any contradiction on the part of the wife (Balfour v Balfour [1919] 2 KB 571). The agreement will require that the entities privy to the contract, accept that they are indulged by the law to abide to the agreement in addition, that it can be implemented by the law. This intent to form legal associations is acknowledged by all parties involved, and thus, the agreement does not really have to denote that the party comprehends the aspects surrounding it as well as anticipate legal consequences to follow as this is assumed when coming into a contract. If by any chance all the individuals privy to the contract come to a decision and decide that the agreement is not to be legally binding, this ought to be unmistakably detailed in the agreement for it not to be enforced legally.

Conclusion

As a consequence, based on the aforementioned requirements with the assumption that the Kardashian sisters herein Kim, Khloe and Kourtney have the legal capacity to enter into a contract with Simon. Simon then has to make the offer framed as his desire to have them on the judging panel of his show whereby if Kim, Khloe and Kourtney accept his offer with the terms and conditions set forth with the actuality of the 1 million euros payment as the consideration with the reminder that all or any of the parties privy to this contract act ultra vires of the terms and conditions agreed upon, then there are legal consequences. Accordingly, the offer and acceptance with replication of their aforementioned, shows that legal relations have been created and thus a valid contract hat is enforceable under the English provisos on the law of contracts. Simon has to inform Kim, Khloe and Kourtney that the contract is governed by the English law as it a vital point considering they are American citizens and it is vital to disclose all pertinent information so that in case of a breach of agreement, they do not cite this fact was not disclosed to them.

THE LEGAL CONSEQUENCES IF CONTRARY TO THE AGREEMENT, THE SISTERS DO NOT ATTEND THE FINALE OF THE SHOW

Introduction

The legal consequences for a breach of contract are subject to the terms that have been broken and attract an action for damages by the aggrieved party.

1. Breach of Contract

This particular contract contains express terms that Kim, Khloe and Kourtney will have to sit on the judges’ panel for each and every episode up until e finale for a fee of one million, the aforementioned serve as the express terms of the contract. As a consequence, the contract that is in fact setting out the sisters’ agreement with Simon, ought to be construed factually. This will not be an issue of what either entity essentially anticipated or the other really assumed to have been envisioned however it is what a prudent individual in the situation of Simon and Kim, Khloe and Kourtney would have assumed the terms to mean. The terms of the agreement need to be rationally accessible to both entities when they came into the contract (ICS Ltd v West Bromwich [1998] 1 WLR 896). This contractual proviso has qualified the prerequisite of reasonableness because it is fair and rational in that for 1 million euros as fee, Simon gets his venture ratings hire (The Unfair Contact Terms Act 1977 (Ucta) Sec 11).