Fundamentals of Business

Statutory rights when buying goods/services

Statutory rights are controls placed into a contract by the government when anything is bought or sold. Acts such as the Sale of Goods Act 1979 fall within this category and concern issues such as quality and accuracy of description which is intended to protect the rights of buyers. So, for example, if you are buying food with a label saying "no artificial colours or flavourings" then you are entitled (according to your statutory rights) to expect a product that fits that description.

Contract
Voluntary, deliberate, and legally enforceable (binding) agreement between two or more competentparties. Contractual relationship is evidenced by
(1) an offer,
(2) acceptance of the offer, and a
(3) valid (legal and valuable) consideration.

Each party to a contract acquires rights and duties relative to the rights and duties of the other parties. However, while all parties may expect a fair benefit from the contract (otherwise courts may set it aside as inequitable) it does not follow that each party will benefit to an equal extent.

Existence of contractual relationship does not necessarily mean the contract is enforceable, or that it is not void (see void contract) or voidable (see voidable Contract). Contracts are normally enforceable whether or not in a written form, although a written contract protects all parties to it. Some contracts, (such as for sale of real property, hire purchase agreements, insurance policies) must be in writing to be legally binding and enforceable. Other contracts (see implied in fact contract and implied in law contract) are assumed in, and enforced by, law whether or not the involved parties desired to enter into a contract.

Contrac Contractual formation
In common law jurisdictions there are three key elements to the creation of a contract. These are offer and acceptance, consideration and an intention to create legal relations. In civil law systems the concept of consideration is not central. In addition, for some contracts formalities must be complied with under what is sometimes called a statute of frauds.