What are the 6 underlying presumptions that accompany each contractual agreement when a contract is formed. ?
When a contract is formed, there are several underlying presumptions that accompany it. These presumptions are based on general principles of contract law and help establish the framework within which the contract operates. The six underlying presumptions are as follows:
1. Intention to create legal relations: The first presumption is that the parties to a contract have an intention to create legal relations. This means that they intend for their agreement to be legally binding and enforceable by law. This presumption is generally applied unless there is evidence to the contrary, such as if the contract is classified as a social or domestic arrangement.
2. Offer and acceptance: For a contract to exist, there must be an offer made by one party and an acceptance of that offer by the other party. The presumption is that the offer and acceptance have been properly communicated and accepted as per the terms of the contract. This presumption can be rebutted if there is evidence to suggest that there was no valid offer or acceptance.
3. Consideration: Consideration refers to something of value given by each party to the contract in exchange for the performance of the other party. The presumption is that there is valid consideration for the contract, meaning that both parties have provided something of value. However, this presumption can be challenged if there is evidence to suggest that there was no real consideration or that it was not sufficient.
4. Capacity: The presumption is that all parties to a contract have the legal capacity to enter the agreement. This means they have the mental capacity, are of legal age, and are not under any undue influence or duress. However, this presumption can be rebutted if there is evidence to suggest that one or more parties lacked the required capacity.
5. Legality: The presumption is that the contract is legal and not contrary to public policy or any applicable laws. This means that the purpose and terms of the contract must comply with the legal requirements of the jurisdiction in which it is being enforced. However, this presumption can be challenged if there is evidence to suggest that the contract is illegal or against public policy.
6. Certainty: The presumption is that the terms of the contract are certain and sufficiently clear to be enforceable. This means that the essential terms of the agreement, such as the subject matter, price, and time of performance, must be sufficiently defined. However, this presumption can be rebutted if there is evidence to suggest that the contract terms are vague or ambiguous.
To determine the underlying presumptions that accompany a specific contractual agreement, one should carefully review the terms of the contract and consider the applicable laws of the jurisdiction where the contract is being enforced. It may also be helpful to consult with a legal professional for guidance.