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What really constitutes a legally binding contract in Kenya?
I am in the process of starting a medium sized business and am curious about something. What really constitutes a legally binding contract in Kenya?
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Maurice
said:
In Kenya and many other jurisdictions, a legally binding contract is formed when the following key elements are present: i. Certainty of Terms: A control should not contain vague or ambiguous terms ii. Free Consent: Neither the party to the contract should be coerced iii. Writing: For some contracts like the sale of land, they must be in writing to be legally enforceable iv. Compliance: Some contracts may require specific formalities or registration to be valid. v. Offer and Acceptance: The Offerer must make a clear offer while the other party(offeree) must accept it. The acceptance should match the terms and conditions of the offer. vi. Intention to Create Legal Relations: Both parties must intend that their agreement will create a legally binding contract. Social agreements made in a domestic setting may not be legally binding. vii. Consideration: Consideration is something of value exchanged between the parties e.g money, goods and services viii. Capacity: Contracts with minors or persons of unsound mind are not enforceable ix. Legality of Purpose: Contracts containing elements of illegality are not enforceable for example, contract for sale of illegal drugs.
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Mutiso
said:
In Kenyan context and also in other jurisdiction, a legally binding contract involves a few key elements namely: an offer, acceptance of the offer, intention to create legal obligations, and consideration (something of value exchanged between the parties). To formulate a contract, ensure these elements are present.
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Winfred
said:
In Kenya, a legally binding contract constitutes the following elements:
Offer ‐ It is part of contract negotiations where a party (offerer)agrees to do or not do something in exchange of consideration.
Acceptance - Means one's (offeree) compliance with the terms of an offer made by another.
Consideration - Refers to a promise, performance or forbearance bargained by a offerer in exchange of their promise i.e. something of value.
Intention to create legal relations -The contracting party must have had the intention to form a legally binding contract.
Capacity - The parties entering into a contract must have the ability to satisfy the element required for someone to enter into binding contracts.
Legality - The contract must be consistent with the laws of kenya(lawful).
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