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Introduction to The law of contracts
Introduction to The law of contracts
Contract law cases study
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1) The Common Law: Most contracts are controlled by the state’s common law, which is a traditional based set of laws that are mostly judge-made, from precedent court decisions. 2) The Uniform Commercial Code: Contracts that are primarily for the sale of goods. This code is a standardized collection of guidelines that govern the law of commercial transactions. Contracts that are not for the sale of good which includes contracts for employment, real property, insurance, and others are governed by the common law and summarized in the Restatement of Contracts. Based on the expressed or implied contract presented in this case, the contract is governed by the common law. Therefore, Mr. Pending’s promise to Mr. Thompson is valid and enforceable under the case law and general law of contracts. …show more content…
1) An offer allows the person or business to whom the offer is made to reasonably expect that the offering party is willing to be bound by the offer on the terms proposed. The terms of an offer must be definite and certain . Based on the facts presented in this case, Mr. Pending offered Mr. Thompson a 50 percent raise and a five-year contract. 2) Acceptance is a clear expression of the accepting party’s agreement to the terms of the offer . In applying the case facts, Mr. Thompson accepted Mr. Pending’s offer when he turned down the offer from Ms. Eugest to stay with White Arch Casino (WAC). 3) Consideration is a legal term given to the bargained-for exchange between the parties to the contract – something of value passing from one party to the other. Each party contract will gain some benefit from the agreement and incur some obligation in exchange for that benefit. Finally, Mr. Pending’s bargain-for exchange was if Mr. Thompson stayed with WAC he would receive his offer next
A Louisiana attorney is constantly asked by non-Louisiana peers if the state ever adopted the Uniform Commercial Code or if they are still using the old, outdated, Napoleonic Code. Though Louisiana has stark interpretations of the relevance of the UCC, the state has adopted the code in piecemeal. This article is a partial synopsis of introducing readers to a few of the concepts of UCC as adopted by Louisiana compared to the existing principles of the law of sales.
I interpret consideration as each party must receive something in value as a result of entering this contract. Consideration is a promise to do something that you are not legally obligated to do or perform. Examples of consideration would an Adult film star who signs a contract to perform on camera. As a result of this she is paid an agreed upon amount and receives portions of the video sales. The other party in this type of contract would receive the majority of the video sales for entering this contract. In the end, both parties receive a substantial amount of money; they did not have prior to entering this contract.
Contracts are legal binding agreements whether verbally or written between two or more competent people. They also can be contractual agreements between businesses for services or goods, employment, trade, or lease. Regardless of what type of contract the parties are entering there are six elements they need to follow in order to come to a successful legal understanding. Contracts are built on the fundamentals of offer and acceptance, intention to create legal relations, consideration, legal capacity, consent, and illegal and void contracts. Any contract which represents false statements, unwarranted
Consideration in contract law, is an exchange of something of value between two or more parties in a contract. Each party in a contract must be a promisor and a promisee. A promisor creates an agreement that provides consideration to the promisee in exchange for the promisee’s agreement to provide a service. The value of consideration from the promisor must be of the same value as the performance of the contract terms by the promisee (Open University, 2016). There are two types of consideration, executed consideration and executory consideration. For example, if one party in a contract makes a promise in exchange
The English contract Offer and Acceptance General principles There are three basic essentials to the creation of a contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of an Offer. This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons, or to the world at large.
A contract is any legally binding agreement that is made between two parties. In the legal system an agreement must be between two people or more parties whereby the agreement must be entered voluntarily. In the agreement a lawful object must feature in and should create legal obligations which may either be one or more between the parties coming into an agreement. In the legal system, for a contract to become, it must involve two elements which are namely offer and acceptance. Therefore, the contract elements of offer and acceptance must be conducted by two proficient parties or people who have got legal aptitude. This is to ensure that the parties involved exchange deliberation in order to arrive at a reciprocated commitment (Chen-Wishart, 2012).
Generally, to have a valid contract, there must be (1) offer; (2) acceptance; (3) consideration; (4) parties have capacity to execute contract; and (5) it is a legally enforceable contract. (Miller, 2013). Offer is an objective manifestation by the offeror to execute a contract which gives the power of acceptance to the offeree. (Miller, 2013). Acceptance is an objective manifestation by the offeree to accept the contract. (Carlill v. Carbolic Smoke Ball Co., 1892). Also, consideration exists by bargained-for-exchange between the offeror and offeree. (Labriola v. Pollard Group, Inc., 2004). Lastly, movable goods are governed by Uniform Commercial Code (U.C.C., 2003). U.C.C. has specific rules for auction contracts. An offer is accepted when
All types of contracts must illustrate these elements. Businesses are not exempted from this. These elements provide the contract itself and corresponding parties with the necessary requirements to partake in such an action without complications or drastic detriment. If any action is
Paterson, Jeannie, Andrew Robertson and Arlen Duke, Contract: Cases and Materials (Lawbook, 12th ed, 2012)
When at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise, is how consideration is defined according to Section 2(d) of Contracts Act 1950. Without consideration a contract will not occur. Therefore, it is very vital for consideration to exist to form a contract. Consideration is related to a Latin phrase “Quid Pro Quo” which means a party gives or receives something in return for something the other party gives. This means, for a contract to be valid… Examples of consideration include money, promise to act, promise to abstain from acting, services and many more.
One of the primary reasons as to why consideration should not be abolished follows this idea, that parties who seek binding contracts are doing so in order to ensure the reliability of the other party. Thus, if consideration were to be abolished these agreements would be mere promises that carry no legal weight3 and undermine the essence of contract. Pao On v Lau Yiu Long (1980) provides ...
A contract is a legal agreement between two parties that is both willing, deliberated, and bound legally between two parties. The contract may be done orally or implied, the main topics of a contract are generally employment, sales, or rentals. The evidence provided in a contractual relationship is first, the offer, second, the acceptance, and third the valid legal and valuable consideration. Each party that does a contract has duties and rights attained relevant to the duties and legal rights of the other parties. Even though fair benefits are expected by the party which are relevant, it is not guaranteed that all parties will attain legal benefits. The
Contracts can be defined as an agreement which creates obligations enforceable by law. It comprises of mutual consent, capacity, consideration and legality. in certain places , consideration is replaced by a valid substitute.
In English Law consideration is one of the three main areas of an enforceable contract. It may be defined as an act, forbearance or promise made by a single party that constitutes the price for which the promise of another, is bought. In simple terms, the basic understanding of consideration may be seen as a ‘give and take’ tactic between two parties.
There are essential elements of a valid contract; initially there has to be a proposal and an acceptance. A proposal or an offer should set definite and clear terms in order to be considered a valid offer. If this offer is accepted it becomes a binding contract. The presumption or intentions of the parties involve to make said proposal legal makes it a binding relationship. Something of value must be exchange; this is considered “consideration”. If no consideration is exchange between said parties the contract is not valid or binding. There should also be mutual agreement, all parties must comprehend all vital terms of the contract and must agree to say terms, if there a misunderstanding by any of the parties in...