Business Law Contract and Common Law Theory

Question: Describe about the Business Law for Contract and Common Law Theory. Answer: 1. The requisite elements of a valid contract are as follows (Andrews, 2011). Presence of a valid agreement. Intention on the part of contracting parties to enter legal relationship. Presence of a lawful consideration. Parties must be competent to enter into contract and must offer their free consent. 2. The various defences to enforceability of contract are as follows (Edlin, 2007). Unconscionable conduct is present on the part of either of the parties which led to the misleading of the other party and thereby entering contract. Application of duress (physical or economic) by one of the parties which renders the contract voidable. Frustration of contract due to underlying circumstances which cannot be attributed to either of the parties. 3. Based on the given facts, Duncan had an enforceable contract for the position of CDO and the contract was bilateral as there was offer of the position by the bank which was accepted by Duncan. Also, there was lawful consideration in the form of monetary compensation, intention to form legal relations and capacity of both parties (Richard, 2003). 4. Implied contracts are driven not by words but by conduct. For these to exist, it is imperative that the plaintiff offer any particular service or product for which compensation is expected. Also, the other party should be aware of the compensation expected and must have a choice to reject or accept the offer (Taylor and Taylor, 2015). 5. Yes, there is an implied contract of employment as Duncan offers services in the capacity of CDO for which a definite compensation is to be paid by employer and also choice is available for both parties (Andrews, 2011). References Andrews, N. (2011), Contract Law, Cambridge: Cambridge University Press Edlin, D. (2007), Common law theory, Cambridge: Cambridge University Press Richard S. (2003), The Modern Law of Contract, London: Cavendish Taylor, R. and Taylor, D. (2015), Contract Law, London: Oxford University Press