This is a bilateral contract between A and B for A providing Marketing services to B from November 1, 2010, on a retainer basis of £1000 per month.
In return, A would provide full Marketing services to B, including preparation of monthly market reports, surveys and customer meets for promotion of B’s products and services. This contract also entails the preparation of survey reports of B Ltd. and all other matters connected therein.
The essential elements of this service provision contract are as follows:
- Offer and Acceptance: There has been a valid offer on the part of B to A for taking up marketing assignment and there has been a valid acceptance of the same by A. Thus, the validity of the contract with respect to the aspect of offer and acceptance has been made. Besides, this is not a question of invitations to make an offer or anything of that sort. The offer for taking up marketing services in B Ltd for £1000 per month is a valid offer and the fact that A accepts this without any modifications or changes is its acceptance. Thus a valid contract is formed
- Intention to create legal relations: In this contractual obligation, both A and B are willing to enter contractual obligations. Thus under the terms of this contract, A could sue B in the event his monthly retainer is not paid, and in turn, B could claim specific performance from A.
- The subject matter of the contract should be legal and within public policy: In this case, the subject matter of the contract, that is the provision of marketing services at B Ltd is perfectly legal and there is no prima facie evidence of it being illegal, or against public policy. Thus, this bilateral contract has also fulfilled this element of validity of a bilateral contract
- Consideration: There is adequate consideration flowing from both parties in this bilateral contract. On the part of A, the consideration is £1000 per month, while that of B or B ltd is the rendering of marketing services by A. Thus, the consideration flowing from A is the performance of marketing services while that of B is the payment of the monthly retainer charges.
- Certainty of the subject matter of the contract: In this case, it is evidenced that the contract is very clear and consistent with regard to its certainty. Indeed it would be in best contractual practice that another sub-contract, detailing in-depth kind of Marketing services, and the depth and scope of marketing services that need to be rendered by A, should be drafted and validated by the concerned parties. This would, in turn, clear any ambiguity in the contract and bring it within the range of performance
- The capacity of the parties to the contract: It is believed that both A and B are majors, having attained the age of majority under English laws. Thus, they are fit and competent to enter into a contract on their own accord, and this contract confirms the fact that both parties, through their own volution and intent, wishes to enter into contractual obligations
- Lack of undue influence or coercion: This bilateral contract between A and B has been signed without any elements of undue influence, coercion or mala fide intentions and with the full and abiding consent of both parties.
Neither have any of the said parties acted on this contract while under pressure or instigation from any other party.
This contract is validated for performance, on this, the 9th day of October 2010, given under the hand of both parties – A and B.