The law of contract acts as a golden thread throughout all business transactions. It governs the foundational agreements in such business transactions, thereby providing a legal framework for rights, obligations, and enforceability. Kool Kars Inc is owned by Melissa. The company rents luxury cars at different price ranges. The business also offers a chauffeur service. The company has 3 showrooms all over South Africa. Kool Kars Inc has become quite popular for weddings, school dances as well as photoshoots. Melissa wishes to contract with Photo4U Inc, a company owned by John. The company does photography as well as special effects. Melissa believes that this will be a great addition to her business. She however is mindful of the importance of a well drafted contract that includes the essentialia required to make the contract legally enforceable, valid and binding. Melissa states that she understands that a meeting of the minds is necessary in order for a contract to come into existence.

QUESTION 1

You are required to outline SEVEN (7) requirements for a valid contract in law. In your answer you must ensure that you provide practical examples which relates to the above scenario in order to illustrate what the essential terms mean.