"CONTRACT LAW1CONTRACT LAWCONTRACT LAW2A contract is an agreement that takes place between two or more people. In order to havevalid contract, there must be a valid offer and an acceptance and there must also be anintention of a creation of the legal binding agreement wherein the price is paid and there is alegal capacity of entering into the contract on one own free will and also with the properunderstanding and consent (Australian contract law, 2017).The following are the essentials of a valid contract:1. Agreement: the first and the main element of a contract is the agreement that takesplace between the parties. This is most commonly referred to as the offer andacceptance. For the offer and acceptance to take place, there must be an occurrence ofone party wherein he sets out the terms on which the second party shall be bound.This offer must be accepted by the other party and must withdraw the offer by thefirst. The examples include the invitation to treat, counter offers etc. (Australiancontract law, 2017).2. Consideration: there must be a consideration that must be involved. There must be apromise being made by one person. This means that there has to be an exchange ofsome value between the two parties. The courts would generally never enforce thepromise by one person unless and until there is an exchange of something of value inreturn. These are the values that are required to be equal but there has to be somethingthat must be given to each one of the party. The example of these include the moneywhich would range from the nominal sum of $1, goods, a promise of doing somethingor the promise to refrain from doing something. This is another point of considerationwherein the past consideration is just not enough. CONTRACT LAW33. Capacity: both the parties entering into the contract must be capable of entering intothe contract. This just means that the people entering into the contract must not beminors or be mentally impaired or be the people with diminished capacity whereinthey are not legally capable of entering the contract (Law hand book, 2017).4. Intention of being legally bound: the fourth element is that there must be anintention of entering into an agreement wherein there is a creation of a legallycontractual relationship. In order to illustrate, it is generally assumed that the partiesthat have entered into the commercial agreements that are capable of entering into thelegal consequences while the parties to the social or the domestic agreements areassumed to have the legally binding contract. This goes on to create the assumptionthat the parties assert the opposite must approve the same. The responsibility ofproviding the proof would be on the party to the commercial agreement that would goon to prove that the domestic agreement would be required to prove that the partieswould intend to enter into the binding contract. The other issues goes on to include thefact that there is no intention which is bound to be safe and in the case, the contract ismade subject to the agreement, then the court would determine whether the partieswere bound and whether they had formalised the exact terms or not etc.5. Formalities: the contract must be able to meet the standards that must be legally bebound. One of the easiest examples is the contract pertaining to the transfer of theinterest in land that needs to be writing.6. Certainty: for a contract to be certain and sufficient, there must be a properidentification of the rights and the obligations of the parties. All of these matters arevery much necessary when it comes to giving the practical effect to the agreement thatis required to be completed and there must also be some of the sufficient time framesfor the purposes of performing each one of the main obligations (Hill house, 2017). CONTRACT LAW4In the given case, there was no written agreement that the Park safe would take care of the carthat has been parked and in fact, the ticket clearly stated that the owners would park the car attheir own risk. So, there is no agreement. There was consideration involved, the parties werelegally capacitated. All of the formalities such as buying of the ticket were complete andthere was no proper identification of the rights and the obligations of the parties.Hence, the following are the answers to the relevant questions:? There is no valid contract since there is no written agreement and there were noproper identification of the rights and the obligations of each one of the parties.? Both the parties entering into the contract must be capable of entering into thecontract. This just means that the people entering into the contract must not be minorsor be mentally impaired or be the people with diminished capacity wherein they arenot legally capable of entering the contract. Since, nothing of this sort was present,they are capacitated.? No there is no breach of the contract since there is no valid contract.? In case, there would have been a breach of the contract, then the Park safe would havebeen liable for the damages suffered by Marcus.? Yes, Park safe could easily exclude from the exclusion liability."