Legal relation and consideration – An agreement does not mean that it is a contract. The parties must have the purpose of entering into a legally binding contract. The parties can judge it on the basis of the circumstance in which the contract was made. Legal capacity and consent – According to law, certain people are not permitted, or the law of contract does not apply to them. These peoples are minors, mentally impaired individuals, corporations, prisoners, or bankrupts. The exception to this law can be in the case of necessity. For the contract to be valid the consent of both parties is required.
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Types of Contract Valid
There are two types of contract validity which business law students need to study and prepare assignments in-
- Limited validity contract – To stay valid for a specific time limit such contracts are designed, which means either the end date is mentioned by the system that automatically gets picked or it’s been written by the authorities during the work process is on.
- Open-ended validity contracts – This type of contract has both starts, and end date, however, is treated with the prospect of getting cancelled after a particular time frame.
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