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ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore. Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.
Suggested Answer: C
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Express terms are the terms of the agreement which are expressly agreed between the parties. Ideally, they will be written down in a contract between the parties but where the contract is agreed verbally, they will be the terms discussed and agreed between the parties.
The types of express terms to be found in a contract are many and varied and will depend on the type of contract. Any term written into the contract is an express term and may refer to price, time scales, warranties and indemnities, limitations on liability, conditions precedent and so on.
- Contracts: Express and Implied Terms
- CIPS study guide page 32
LO 1, AC 1.2
34 comments · newest first
FR
Franchesca
11 months ago
An upfront payment isn't always required, right?
PA
Patti
11 months ago
Offer and acceptance are definitely key elements!
JE
Jesusita
12 months ago
Wait, does an invitation to tender really matter for a binding contract?
LE
Lera
12 months ago
Totally agree, intention to be bound is essential too.
JO
Jospeh
1 year ago
All parties must have capacity to contract is a must!
CH
Christoper
1 year ago
I believe all parties must have capacity and there must be intention to be bound, but I can't quite remember if the invitation to tender is mandatory.
EL
Elinore
1 year ago
I practiced a similar question, and I feel like the offer and acceptance part is crucial, but I’m uncertain about the need for an upfront payment.
KI
Kimi
1 year ago
I think intention to be bound is one of the key elements, and I also recall that there needs to be an offer and acceptance.
SH
Shaniqua
1 year ago
I remember that capacity to contract is definitely important, but I'm not sure about the invitation to treat.
EN
Enola
1 year ago
I feel pretty confident about this. The key things are the parties' capacity, their intention to create legal relations, and the presence of an offer and acceptance. Those are the three I'll go with.
AD
Adela
1 year ago
The upfront payment requirement seems a bit odd to me. I don't think that's a standard element for a contract to be legally binding. I'll skip that one.
MA
Marion
1 year ago
Okay, let me think this through. Capacity and intention to be bound are definitely essential. And an offer and acceptance are crucial too. I'll select those three options.
EA
Earlean
1 year ago
This looks like a classic contract law question. I'll focus on the key elements of a legally binding contract - capacity, intention, and offer/acceptance.
ED
Edda
1 year ago
Hmm, I'm a bit unsure about the invitation to treat part. Does that really count as a mandatory element for the contract to be binding?
PE
Percy
1 year ago
This seems like a tricky question. I'll need to carefully read through each statement and think about which one is false.
MA
Mammie
1 year ago
Hmm, I'm a bit unsure about this one. There are a lot of details in the defect report, and I want to make sure I'm considering all the relevant information before selecting an answer.
AL
Alisha
1 year ago
Psst, the secret handshake is only required for the advanced contracts exam. This is the beginner level, so stick to the basics.
BE
Bettina
1 year ago
I think I'll go with A, B, and D. Can't go wrong with the classics, right? Unless of course, this is a trap and the correct answer is like, A, D, and the secret handshake or something.
EL
Eleni
1 year ago
Yes, those elements are essential for a contract to be legally binding.
BE
Bernardo
1 year ago
I think you're right, A, B, and D are the most important aspects to consider.
KI
Kimbery
1 year ago
Definitely, those are the classic elements that make a contract valid.
RE
Rebeca
1 year ago
I agree, A, B, and D are the key elements for a legally binding contract.
MI
Mitsue
1 year ago
Haha, E? Paying upfront? What is this, a mob deal? I'm pretty sure that's not a requirement for a legal contract.
CA
Carmen
1 year ago
C and F? Really? Since when are those mandatory elements of a contract? This exam is trying to trick us.
DO
Dona
1 year ago
D) There must be an offer and an acceptance
EL
Elli
1 year ago
B) The two parties must have intention to be bound
QU
Quinn
1 year ago
A) All parties must have capacity to contract
AD
Adelina
2 years ago
Definitely A, B, and D. Those are the basic elements of a legally binding contract. I'm not sure about the other options though.
PA
Paris
1 year ago
Got it, so as long as A, B, and D are present, the contract between ABC Ltd and XYZ Ltd should be legally binding.
SH
Shelton
1 year ago
Yes, those are the essential elements. The others like invitation to tender or upfront payment are not mandatory.
MA
Marti
1 year ago
I agree, parties must have capacity, intention, and offer/acceptance for a contract to be binding.
SH
Shakira
2 years ago
I'm not sure about the invitation to tender being mandatory. I think it's more about offer and acceptance.
PI
Pilar
2 years ago
I agree with Jimmie. Capacity to contract, intention to be bound, offer and acceptance are crucial for a valid contract.
JI
Jimmie
2 years ago
I think A, B, and D are the mandatory elements for the contract to be legally binding.