Task 1: Explain the importance of the essential elements required for the formation of a valid contract. ContractThe contract is an agreement that legally binds the parties. A party is bound by a contract because he has agreed to be bound. “Consenting minds” is the basic theory. The parties will be judges of what they have said, written or done, not of what they think, and contracts need not be written. Intention The intention must belong to the parties to create legal relations between them. It is one of the necessary elements in the formation of a contract because it consists of the willingness of a party to accept the legal sequences of entering into an agreement. The intention to establish legal relations can be separated into domestic (social and family) agreements and business agreements. In domestic agreements, there is no intention to be legally binding on the parties involved. Otherwise, in terms of exception, the presumption is revoked. The intention also concerns property between spouses and parents. For example, in Balfour v Balfour 1919, the husband brought his wife to the UK from Ceylon. Then the husband had to return and his wife stayed behind for health reasons. He promised to pay her £30 a month until she returned. Later, the marriage ended in divorce and the wife sued her husband. The wife's action failed because no intention to create a legally binding agreement was found. Domestic arrangements may also involve those who are not related but live in a domestic situation. In commercial agreements it is the opposite, there is a presumption or intention to be legally binding. Otherwise, in terms of exception, the presumption is revoked, for example in the case of Rose and Frank v Crompton 1923....... middle of paper ......t for custody. Then the woman locked the room and handed the key over to reception. Later, a thief got the key and stole the wife's furs from the bedroom. Thus, the hotel could not rely on the disclaimer since the contract had been concluded previously and the disclaimer was too late. In this case, two situations can also occur: either Julie will be able to claim the losses, or she will not. be able to claim losses. If she was not aware of the sign affixed to the wall before or at the time of concluding the contract, she may claim damages for the loss of her ring. But if she knew about the sign on the wall before making the deal, she won't be able to claim damages for the loss of her ring unless she argues it was a mistake. inattention of the company's workers.BibliographyThere are no sources in the current document.