Chapter 6 Test: Genuine Agreement
Genuine agreement is at the heart of any legally binding contract. Also known as mutual assent, it refers to the agreement reached by parties involved in a contract. It is essential because without it, a contract is not enforceable in a court of law.
In chapter 6 of our contract law series, we will be discussing genuine agreement, how it is formed, and what happens when there is no genuine agreement in a contract. This chapter is particularly important for lawyers, law students, and business owners who draft contracts regularly.
What is genuine agreement?
Genuine agreement refers to the meeting of minds between individuals entering into a contract. It is an essential element of any legally binding agreement. Genuine agreement requires that both parties fully understand the terms of the contract and agree to them willingly. It is important to note that genuine agreement does not mean that both parties have to agree to everything in the contract, but rather that they are aware of and understand the terms.
How is genuine agreement formed?
Genuine agreement is formed through offer and acceptance. An offer is a proposal made by one party to another, while acceptance is when the other party agrees to the terms of the proposal. For genuine agreement to occur, both parties must agree to the same terms and be aware of the terms of the contract.
What happens when there is no genuine agreement in a contract?
When there is no genuine agreement in a contract, it is said to be voidable. Voidable contracts are not enforceable in a court of law because they lack genuine agreement. If one party feels that they were misled or lacked information that should have been disclosed before entering into the contract, they can take legal action to have the contract voided. However, if the party that was misled had the opportunity to understand the terms, but did not do so, the contract may still be enforceable.
In conclusion, genuine agreement is a fundamental element of any legally binding contract. It ensures that both parties are aware of the terms and willingly agree to them. Without genuine agreement, a contract is not enforceable in a court of law. Therefore, it is important to ensure that any contract you enter into has genuine agreement to avoid legal disputes.