Question

A proposal made by braxton, to his friend mike, indicating willingness to enter a contract to buy mike's old car for $4000, fulfills which element of the formalist theory of contract law?
a. capacity

b. consideration

c. mutual assent

d. legality

Answer 1

Answer: A. capacity

 

A proposal made by Braxton, to his friend Mike, indicating willingness to enter a contract to buy Mike's old car for $4000, fulfilled the 5th element of the formalist theory of contract law which is “capacity”.

 

Elements of Formalist theory of contract Law

 

The  “Formalist Theory of Contract Law” is composed of six elements. It includes the following:

1.       Offer- this is the first element. An offer then should be made.

2.       Acceptance- the second element where the offere has to accept the offer.

3.       Genuine agreement- the third element which states that, two parties have to agree on the contract’s terms.

4.       Consideration- the fourth element; something of value is exchanged to both parties.

5.       Capacity- fifth element, legal ability to enter or involve in a contract.

6.       Legality- sixth element, contract has to be legal.