In this session, our lawyer share the knowledge about the important of contract with business owner and staff. Basically, contract is an enforceable agreement by law where two or more parties are bind to do or to refrain as promised.
It is important to take note about five(5) elements of contract
- Offer that made by any parties– For example, in the situation of buying the house the vendor offer the price of the house is RM 300K.
- Acceptance is made by other parties-For example, in the situation of buying the house the purchaser accept the offer and agree to pay the purchase price (eg.RM 300K) offered by vendor.
- Intention to Create Legal Relation- Both parties entered into an agreement. For example, both parties will execute the Sale and Purchase Agreement(SPA) by complying the terms and condition in the agreement.
- Consideration-For example, in the situation buying a house consideration element refer to the purchaser receive the house and the vendor receive the purchase price amounting RM 300K.
- Agreement– valid and enforceable contract has been made, any disputes arise such as breach of contract by any agreed parties may constitutes the legal action.
In conclusion, before enter to any agreement it is important for us to review the five(5) basic elements of contract.
