Tort law Essay Example | Topics and Well Written Essays - 1000 words - 3

Tort law - Essay Example One of the requirements of offer is the offeror’s intention to be bound by the made proposal and elements of seriousness are necessary. Terms of the proposal must also be definite to the involved parties and the court must be able to ascertain the terms. In addition, the proposal must be communicated to the target party in order to constitute an offer. Another essential element of a contract is acceptance of the offer and this must be consistent with terms of offer and within a reasonable period. Offer and acceptance constitute an agreement (Miller and Jentz 2010, p. 208- 218). Another element of a valid contract is existence of consideration for the offered benefits. Consideration must be a valuable object, recognized by law, and can be present or be a promise to be executed in future. Parties to a contract must also have legal contractual capacity such as majority age, sound mind, and freedom from intoxicants. In addition, the subject matter of the contract must be legal, no t contrary to any existing law or repugnant to natural justice or humanity (Miller and Cross 2012, p. 189- 190). Annabel Constructions Ltd. builds residential flats. In one of its ventures, it entered into agreements with clients to complete and deliver apartments to the clients. The agreement stipulated date of delivery and included a penalty clause for any delay on delivery. Annabel contracted different suppliers for deliveries and completion of its apartments and Murray & Co. won the contract for supply and fixing of double-glazed windows. The company had however under quoted its bid, realized its inability to complete the work, and communicated this to Annabel before Annabel agreed to pay additional  £ 20000 for completing the work in time. Murray the completed the work within the original schedule but Annabel Constructions refused to pay the additional  £ 20000 as had been agreed between the parties. A breach of contract exists if a valid contract