How a Valid Contract Means In Cambodian Law?
Six Basic Requirements for a Valid Contract:
1)Real Agreement – this requirement generally mean that a valid offer must be communicated from one party (the offeror) to another party(the offeree), and that the intended offeree must make a proper acceptance. Tobe valid, and offer must be serious, definite, reasonably clear, and not ended an offer can be ended by the offeror, who may revoke it; by the offeree, who ends it when he makes a rejection or a counter-offer; or by some other event,such as lapse, the incompetence of a necessary party, destruction of the subject matter of the contract, or a change in the law. In common law jurisdictions, a proper acceptance of an offer that requests an act—an offer for a unilateral contract—can generally be made by full performance of that act.A proper acceptance of an offer that requests a return promise—an offer for bilateral contract—can generally be made by communicating the promise the offeror requested in a proper manner. This generally requires that the acceptance be unequivocal and identical to the offer (a “mirror image”), and that the manner of acceptance be reasonable under the circumstance.
2)Consideration – Consideration is basically an exchange of new legal detriment between contract parties. Common law jurisdictions generally require it in order for contracts to be enforceable, but civil law jurisdictions do not. This requirement basically means each party must do or agree to do something he did not have to do before. Many acceptations to the requirement exist, such as for promises to make charitable donations.
3)Capacity – Adults generally have full capacity to make contracts. Important parties who may lake full capacity include minor and those who are mentally incompetent or intoxicated. Contracts these parties make are often voidable. Parties convicted of crimes may have a limited capacity to contract. Foreigners generally have full capacity to contract.
4)Legality – Agreement that violate specific statutes or public policy are generally void and therefore unenforceable.Examples of agreements that violate specific statutes are agreement to commit crimes, charge usurious interest rates, or unreasonably restrain trade.Examples of agreements that violate public policy are those to commit torts, or harm the administration of justice or the public service.
5)Formality– Both oral and written contracts are generally enforceable. But some kinds of contracts must generally be written to be enforceable. Importance agreements which many jurisdictions require to be written include those to transfer a substantial interest in land; those which cannot be performed within one year; suretyship agreements; and those for the sale of goods over certain monetary amount.
6)No Other formation Problems – Other formation problems may affect whether agreement are valid. Importance examples include agreements resulting from mistake, misrepresentation, duress, or undue influence, which are generally voidable. In limited situations, courts may refuse to enforce agreements because they are unconscionable, which occurs where there is extreme unfairness in the process of the formation or terms of an agreement. Finally where a party justifiably replies on a promise that promise might be enforced under the common law doctrine of promissory estoppel to the extent needed to avoid injustice—even though legal requirements such as real agreement or consideration are not met.
What Can We do?
MRS Law Office is a leading cooperate law firms in Cambodia. Our team who get deep experience as law practitioners where we can assist you with our professional legal services to achieve their business goals. Presently, MRS Law Office can provide you to draft all kinds of contracts such as Commercial Contract, Leased Contract, Loan Contract, Mortgage Contract, Land Buying-Selling Contract, Building Construction Contract, Long Term Leased Contract, Employment Contract, Right Mortgage Agreement, Transportation Contract, etc.
Other News & Events
A Chance to Invest In Cambodia
A Chance to Invest In Cambodia Cambodia is now opening for free market and business, while its government takes a big intere ...