We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is an Essence of Contract?

Mary McMahon
By
Updated May 16, 2024
Our promise to you
MyLawQuestions is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At MyLawQuestions, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An essence of contract is the key condition on which a contract is based. Violation of this condition is grounds for rescission, where the other party can break the contract without penalty because it has already been breached. It is also possible to sue for damages when the essence of contract is not respected. This differs from a warranty, a clause in a contract that doesn’t change the material meaning so substantially that the other party can withdraw if it is broken.

Conditions in a contract can be express, specifically spelled out in the terms, or implied, generally accepted under the law. In an insurance agreement for a vehicle, for example, the insurer expressly agrees to cover the vehicle for a specific amount of money. The agreement may imply that the contract holder has an insurance interest in the vehicle. If there’s an accident that results in a claim and the person who owns the policy doesn’t actually own all or part of the car, the insurance company does not have to pay out, because the policyholder violated the essence of contract.

Contract law can get extremely complex. Basic contracts with reusable boilerplate are available for many activities, like renting houses and buying real estate. Both parties should read the contract carefully to make sure they understand it. Even in a routine transaction, it is critical to know which conditions are part of the essence of contract. Failing to comprehend these could mean that a party breaches the contract without being aware, or doesn’t understand the ramifications of violating the agreement.

For more complex and delicate transactions, an attorney may draft a new contract. Both parties have the right to review the document and make sure the essence of contract is clearly understood, along with penalties for any breeches. If there are problems or questions, they are typically addressed before the contract is signed. Once a legal agreement is created with signatures on a valid contract, both parties are responsible for upholding their part of the essence of contract.

When a contract goes to court because a party has broken it or wishes to challenge some element, there may be a discussion about the essence of contract. Attorneys can argue about the precise nature of the contract and the specifics of the conditions. Loopholes may make it possible to avoid penalties for breach of contract or to negotiate a new agreement.

MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a MyLawQuestions researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.