Marine Insurance

The parties must have the intention to be legally bound. This will normally be satisfied in a commercial context. The parties must be of sound mind and they must be of age; a minor cannot enter into a legally binding contract except a) for employment b) for the purchase of necessities. Most contracts (apart from those relating to land) may be either oral or in writing and are legally binding and enforceable in either form. In most commercial dealings the contract will be in written form but with the exception of Marine Insurance contracts, this is usually a matter of choice rather than law. The doctrine of privity of contract states that a person who is not a party to the contract cannot enforce the contract even where that contract is expressly for his benefit. In other words, a person who has not provided consideration cannot enforce the contract. In such a situation, the beneficiary to the contract has no redress at Common law and is faced with seeking redress in Equity.