An agreement is an agreement between two or more parties. A contract is a particular type of agreement which, by its terms and elements, is legally binding and enforceable in court. In certain circumstances, an unspoken contract may be established. A contract is implied when the circumstances imply that the parties have entered into an agreement when they have not expressly done so. For example, John Smith, a former lawyer, can implicitly enter into a contract by going to a doctor and being examined; If the patient refuses to pay after the examination, the patient has broken an implied contract. A contract implied by law is also called quasi-contract because it is not actually a contract; Rather, it is a means for the courts to remedy situations in which one party would be unfairly enriched if it were not obliged to compensate the other. The Quanten Meruit claims are an example. Under common law, the elements of a contract are; offer, acceptance, intention to create legal relationships, consideration and legitimacy of form and content. An exception arises when advertising makes a unilateral promise, such as offering a reward, as decided in the famous case of Carlill v Carbolic Smoke Ball Co, in 19th century England. The company, a pharmaceutical manufacturer, proposed a smokeball that, if it sniffed “three times a day for two weeks,” would prevent users from catching the “flu.” If the smokeball does not prevent “the flu, the company promised that it would pay $100 to the user, adding that they deposited “$1000 in the Alliance bank to show our sincerity in the file.” When Ms.
Carlill complained about the money, the company argued that the complaint should not be considered a serious and legally binding offer; instead, it was a “simple mess”; However, the Court of Appeal found that Carbolic had made a serious offer to a reasonable man and found that the reward was a contractual undertaking. Online entry into contracts has become commonplace. Many jurisdictions have adopted electronic signature laws that have characterized the electronic contract and signature as legal validity, such as a paper contract. If the promise of the contract is not kept, the victim can file an appeal. As long as a contract meets the above conditions, it is enforceable in court, which means that a court may compel a non-compliant party to comply with the terms of the contract.