Contract Law And Social System - 2196 Words

In the institution of legal and social system, contract is the central pillar on which these institutions are standing. In order to understand the system, it is necessary to recognize that deduction is one of the means of the system and not the only end. The concept of contract law is not only to bind the parties under liabilities but also to work on the concept of consideration or promises made. In the concept of contract law, it is a well settled proposition that consent is considered to be the heart of a valid contract. Contract is an agreement that binds the parties either to perform an act or to refrain from doing any act in the future. There are three principles of a traditional contract which need to be present in order to†¦show more content†¦It invalidates the contract â€Å"where the consent of the complainant has been procured by illegitimate pressure†. The situation in which duress is formulate by the opposing parties is, when there is no other way or other option but to agree on the new terms presented by the pressurized party. The remedy is that an affected party can take the other party into court on the basis of economic duress. The affected party in order to make its claim has to prove the following; 1. There must be a valid contract between the parties 2. There must be a threat from the other party to cancel the contract In commercial contracts or agreements, it is evident to make distinction between that is a lawful threat and what is consider to be an unlawful threat. Pressure is involved in all sort of agreements and business dealing but it is necessary to prove that one of the parties are more influencial as compared to the other party. We cannot claim that one of the parties have threaten the other parties that they would not enter into any future business contract, this type of threat doesnot create duress and invalidate the contract as everyone is entitled to find and choice whoever they feel like doing their business with. However, if the party threaten the other party to break the contract is a different issue. It is a settled principle that non-performance of a contract is per se unlawful, every party has a right to break the contract