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Hi I'm Nathan a solicitor at Vanguard lawyers today we're going to talk about contract law and how contracts are formed we enter into contracts on a daily basis and mostly don't even realize every time we go to the shops and purchase our food or bike clothes we enter into a contract as we know these daily activities are not written contracts and are more akin to oral contracts these contracts have the same elements as formal contracts have and arguably the same legal enforceability there are six elements that must exist to have a legally enforceable contract there needs to be an author there needs to be acceptance than is the consideration mutuality of obligation capacity and in some circumstances a written instrument the purposes for having a legally enforceable contract is for each party to the contract to know their rights and obligations within a particular agreement and also had the confidence that the other party will fulfill their obligations and under the contract having a contract also gives each party confidence that if the other party did not fulfill their obligations stated in the contract then the court will enforce the contract so long as it is legally valid generally to be legally valid most contracts must contain two elements all parties must agree about an offer made by one party, and it must be accepted by the other party something of value must be exchanged for something else of value this is what we refer to as consideration these can include goods cash services or a pledge to do something in exchange for the items there are some exceptions where it caught may set aside a contract notwithstanding the fact that they consist of the above elements, so our first exception is contracts with family members a contract between family members will not be legally enforceable unless there is an express term in the contra stating that the parties wished for the contract to be legally binding another exception is contracts with minors a contract entered into with a minor which is a person under the age of 18 will not be legally binding unless it is for the minors benefit another exception is misrepresentation so if a contract has been entered into under a misrepresentation by one of the parties, so the fourth exception is if one or both parties enter the contract by mistake a mistake in this sense does not mean bad judgment for a mistake to be effective validity of a contract it must be an operative mistake that is a mistake which operates to make the contract void or voidable the fifth exception is entering into a contract under duress this is illegitimate pressure or threats exerted by one party to force another party or of consent to a contract against the latter parties will another exception is entering into a contract by way of undue influence there are two main points to be considered they are unconscionable conduct which is where one party to the contract is under a special disadvantage that was knowingly exploited by the other...
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