Formation of Contract
There is no requirement that a shipbuilding contract should be concluded in writing, it will be also legally enforceable in oral provided that necessary formal elements are present. The main terms of an agreement, such as expenditure, timescale and risks involved in shipbuilding, are better to record in written form.
In order to create an enforceable agreement, the essential elements for an agreement to form a legally binding contract must be presented, they are:
- offer;
- acceptance;
- consideration;
- privity of contract
- intention to form a contract;
- capacity;
Where all these elements are present, a legally binding contract comes into effect. Otherwise, if any of the elements are missing, there is no legally binding contract.
Read more about this topic: Shipbuilding Contract
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