Law Theory of Contractual Obligation †Free Samples to Students

Question: Discuss about the Law Theory of Contractual Obligation. Answer: Introduction: All contracts are agreements but all agreements are not contract is a valid and true statement. A contract is formed for binding legal relationship and agreement where more than one party can perform according to their acts. There must an offer that should be accepted by another party with mutual consideration (Knapp, Crystal and Prince 2016). The parties should have intention to make a legal relation and create a contract which is involved with lawful matters. In the contract both of the parties can freely perform according to the terms of the contract (Fried 2015). If A has make some promises to sell a house to B for $20,000 and B make the promises to buy that house from A then it is a contract (Fried 2015). When a contract is form, an agreement is essential for it. A contract never considered as a contract without an agreement because when there is a contract there should be an agreement which is made but an agreement is never form where no contract is present (Knapp, Crystal and Prince 2016). An agreement is form for make the cross referencing between different parties where it can make written or oral or according to the requirement of the parties and that can be enforceable. An agreement always forms as per the promise which set the consideration for each of the party in the agreement (Fried 2015). An agreement is not contract because it arise legal obligation for both of the parties. When an agreement failed to create according to the promise then its never considered as a contract (Knapp, Crystal and Prince 2016). Agreement of moral religious or social natures always makes the duty enforceable by the law for parties who never make the intention to make it by legal consequences (Fried 2015). If A invite D to dinner and D accept the invitation but not intend to attend the dinner therefore no contract has been produce and A also not able to take any action against D for damages. Therefore it is not a contract (Knapp, Crystal and Prince 2016). Reference Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University Press, USA. Knapp, C.L., Crystal, N.M. and Prince, H.G., 2016. Problems in Contract Law: cases and materials. Wolters Kluwer Law Business.