Agreements Vs Contracts Explained

Summary

Agreements can be informal and not legally binding, while contracts have legal intention and enforceability. Social promises lack legal intention, commercial agreements are enforceable, and family arrangements are usually informal. The objective principle helps courts determine contract enforceability by evaluating outward expressions and conduct, focusing on what a reasonable person would interpret.

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. Discuss the distinction between agreements and contracts, using social promises, commercial agreements, and family arrangements as illustrations
Hi ****! Let's break down the distinctions between agreements and contracts using your examples:
- Social Promises: These are informal agreements, like promising to meet a friend for coffee. They lack legal intention and aren't enforceable in court.
- Commercial Agreements: These involve business transactions with clear terms and conditions, and have legal intention, making them enforceable.
- Family Arrangements: Often informal, like deciding on family vacations, they usually lack legal intention and are not enforceable unless specified.
In essence, contracts are agreements with legal intention and enforceability, while agreements can be informal and not legally binding. If you have any further questions about agreements or contracts, feel free to ask!
Analyse how the objective principle assists courts in deciding whether an enforceable contract exists.
The objective principle helps courts determine the existence of an enforceable contract by evaluating the outward expressions and conduct of the parties involved, rather than their internal intentions. Here’s how it works:
- Objective Test: Courts assess what a reasonable person would interpret from the parties' actions and words.
- Offer and Acceptance: Clear evidence of offer and acceptance is analyzed objectively.
- Terms and Conditions: The clarity and specificity of terms are crucial for enforcing contracts.
- Conduct: Actions indicating intent to be legally bound are considered.
Feel free to ask more questions if needed!