Agreements for Common Law: What You Need to Know
Agreements for common law refer to contracts that are formed by a mutual understanding and agreement between two parties. These types of contracts are governed by the common law, which is a body of law developed over time by the courts. Unlike statutory law, which is created by legislation, common law is based on judicial decisions and precedent.
Common law contracts can be verbal or written, and they are enforceable if they meet certain requirements. In this article, we’ll explore what you need to know about agreements for common law.
Elements of a Common Law Contract
To be valid, a common law contract must meet the following elements:
1. Offer: An offer is a promise to do or not do something in exchange for something else. It must be communicated to the other party and must be clear and specific.
2. Acceptance: The other party must accept the offer, and this acceptance must be communicated to the person making the offer.
3. Consideration: Consideration is something of value that is exchanged between the parties. It can be money, goods, or services.
4. Capacity: The parties to the contract must have the legal capacity to enter into the agreement. This means they must be of legal age, of sound mind, and not under duress or undue influence.
5. Intention: Both parties must intend to enter into a legal relationship.
Enforceability of Common Law Contracts
Once a common law contract has been formed, it is legally binding and enforceable. The courts will enforce the terms of the contract, and the parties are expected to fulfill their obligations.
However, there are several situations where a common law contract may not be enforceable. For example, if the contract is illegal or contrary to public policy, it may be void. Additionally, if one party was coerced or under duress when entering into the contract, it may be voidable.
Benefits of Common Law Contracts
One of the benefits of common law contracts is that they are flexible and can be tailored to the specific needs of the parties. They do not need to be formal or written, and they can be created quickly and easily.
Common law contracts also provide certainty and predictability. The terms of the contract are agreed upon by the parties, and this helps to reduce the risk of disputes.
Conclusion
Agreements for common law are a fundamental aspect of contract law. They are formed by mutual understanding and agreement between two parties and are governed by the common law. To be valid, common law contracts must meet certain requirements, including offer, acceptance, consideration, capacity, and intention. Once formed, common law contracts are legally binding and enforceable. They provide flexibility and certainty and are an important tool for businesses and individuals alike.