Bill can take legal action against Sally for leasing the shop to Pets to open another store in East-fields. The contract in the first place was not valid. A contract is a legal binding agreement for services and in return, there will be some type of payment. Contracts usually are written for two partiers who will be undertaking duties and or responsibilities. A valid contract consists of five elements. A capacity refers to the reason a contract is required by each party. A consideration could be money, property, services, or an entitlement.
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An offer is made by one party and accepted by the other party. There must be a legal purpose to this contract, meaning there must be a valid reason for creating a contract. There must be an acceptance to the terms of the contract which all parties agree to. Other vital components of a contract include capacity and legal purpose. Capacity means that both parties must have the ability to be held liable for the duties they are taking under the contract. Also the legal purpose of the contract has to be considered. The contract activity can only be enforced by the law if the activity is legal. The services under the agreement cannot be illegal.