Contract Law was created in order to govern the relationship of an agreement between two or more people, this can be individuals, companies or other institutions. Contracts are created for numerous different reasons including employment, the sale of good, the provision of services or the exchange of interests or ownership. Contracts are generally are large part of everyday life with many taking out a contract such as employment or even a mobile phone or mortgage payment.
In a formal manner contract law is regarded as promise or a set of promises that is made and that are enforceable by the law. Another view is that a contract can be regarded as an agreement that gives rise to certain obligations that are enforced and recognised by the law.
If there is to be breach or a diversion away from the stated points within a contract that has been agreed by both parties then legal implications and enforcements can apply. The varied nature of contracts, for example buying a loaf of bread sees a contract occur between the shop seller and the consumer, means that there are many different ways in that contracts are regulated. How serious a breach of contract is will determine how serious the punishments are that are put in place.
There are numerous forms in which a contract agreement can occur, it is important to realise that a contract can be regarded as valid in there different forms. An offer of contract can occur in form of oral communication, in the form of writing or by way of conduct. How the offer is made is regardless, what is important is the intention or willingness of the person making the offer to follow through with the terms of the offer.
Of great importance within the contract laws is the role of the acceptance of an offer. For example there must be a clear acceptance of any contract or terms that have been agreed. The person making the offer must be in a position to clearly prove that an offer of contract has been accepted by the party or parties involved within the contract.
Most people are likely to be concerned with contract law in relation to their contract of employment which they sign when they accept a contract of employment. Every employee must hold a contact of employment with their employer. Whilst in some cases the employer does not draw out a legal contract the employee is still protected to a certain extent by the Employment Rights Act 1996.
The purchase of goods or services also sees a contract being created between two parties. This contract is one that is held between the person buying a product and those selling it. Those selling the product agree to sell the product for the advertised price and assume the rights to ensure the product is sold as described. The buyer enters a contract which states they accept the price that is advertised and agree to pay this.