Secret Principles you don't know about Contract - Part 2

The working definition of the term Contract was provided, so also the basic elements of Contracts were identified. We equally supplied some examples of Contract. This week, we will go further and consider the first element of a valid contract as well as some “must know” principles.📣📣📣

A Contract could either be written or oral. The facts that terms were not reduced into a written document before the commencement of a project, assignment, relationship etc., does not make it less of a Contract. 👌

However, it is desirable to have a written Contract, where all terms, conditions, parties’ expectations etc., are contained in a document.📚

Please note, that where there is a written contract, parties will be bound by the terms and none of the parties will be allowed to introduce a term, clause, condition etc., not contemplated or agreed to jointly by the contracting parties.

Generally, it is advocated that a written contract is more desirable as contracting parties’ rights, duties, expectations etc., are spelt out in a document, this prevents unnecessary dispute and fosters continuous business relationship.👊👊

Where a contract is written, and a dispute erupts between contracting parties, the first point of call is the contract itself. Modern contracts are drafted in a way and manner that envisages disputes and takes care of the overall interest of the contracting parties. It is more interesting that the Court or Arbitration Tribunal will equally not include a term into a contract, rather the court or Arbitration Tribunal as the case may be will merely interpret parties’ intention, i.e. interpret the contract. Hence the desirability of HAVING A WRITTEN CONTRACT DRAFTED BY A LEGAL PRACTITIONER.📣📣📣📣

However, where contracting parties desire that their oral contract be reduced into a written contract, a Legal Practitioner is trained to transform those oral terms into written terms. 📕

1. Offer as one of the elements of a valid contract

An offer is a promise made by a person with the intention that same becomes binding once the other party accepts the promise or it could mean the act of presenting an item or services to another party on certain terms. Let me cite examples for ease of understanding:👇👇👇

a. When a merchant/seller displays an item on an online platform or supermarket with a price tag, that is an offer from the merchant and/or seller.

b. After an interview session, when the HR of a firm or organization states that a person’s services are required on terms to be agreed, that is a form of offer.

c. When a potential investor promises to invest resources, skills, etc., on a project, that is, equally an offer, examples are inexhaustible.

👉👉2 (two) basic terms come up often in this regard and they are Offeror and Offeree.

Who is an Offeror? An offeror is the person who makes the offer.

Who is an Offeree? An offeree is the person to whom the offer is made.

There are times when an offer is made by an offeror to the offeree who instead of accepting same, varies, adds, and/or ‘removes’ from the offer made. What does the law say about this? 👇👇

An offer which is not fully accepted in the way and manner it was made becomes a counter offer.

I will give an example: 👇👇

when Mr. Facebook offers to sell a phone for N50,000.00 and Mrs. WhatsApp accepts to pay N40,000.00, if the sum of N40,000.00 is acceptable to Mr. Facebook, what it means in law is that: Mrs. WhatsApp has made a counter offer.

To be continued on the mini-law-series.

Thank you.🙏🙏🙏

Oluwatosin Ajose Popoola Esq.,

For: Online Law Clinic

👉Onlinelawclinicteam@gmail.com