Formation Of Contract: Discuss The Various Defenses

Formation of Contract
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Formation of Contract
Businesses and individuals enter into contract agreements without understanding the contract validity. Valid contracts need to be acceptable and should include offers and other considerations that satisfy both parties. At times, all these elements may be included, but they cannot be enforced if an individual does not show sufficient defense of the contract formation (Aaron & Caterina, 2016).
Various defenses limit the courts' powers to enforce a contract. According to the law, certain defense formation may permit a party to avoid contractual obligation, for example, if the services or products being supplied are illegal, or if the situation where the basis of the contract is illegal like selling illegal drugs, such contracts are not enforceable. If a contract is contrary to existing policies like entering into a contract is based on sexual favors in return for service, such contracts can be revoked (Jenkins, 2014).
A valid contract includes both parties agreeing on specific terms, including quality of products and other financial requirements. An enforceable contract entails agreements where both parties are willing to negotiate and agree, without anyone being forced or put under economic pressure to sign the agreement. A valid contract includes, both parties having the legal capacity to transact business and are mentally capable of understanding the nature of the agreements. (Bayern, 2015). A contract is termed valid because of the willingness of both parties, and if both parties consent. If the consent is obtained under undue influence, the contract should be revoked; both parties should gain ou...