Introduction A contract is an exchange of promises or the exchange of a promise for an item or act in return, which is enforceable by law (Kubasek et al, 2014). There are many different types of contracts such as express, implied, void, voidable, and quasi. It is important for contracts to be enforced in order to foster trust in the market place. Although, there is a substantial monetary reason for the Scuppernong grape product manufacturer to end its relationship with Don Willetts, Don’s request for continued relationship due to good faith and fair dealing and an implied contract must be honored. Implied Contract An implied contract is a mutual agreement or promise that has not been expressed in words, and in which both parties show …show more content…
Specifically the fifth requirement of competent parties is broken down to mean that competent parties are legally and mentally capable of entering into agreements and those parties such as minors and the mentally ill have only a limited capacity to contract (Cengage.com, n.d.). If acting out of this facet alone there would be no question as to if the contract were enforceable by law. However, the motives of Don when obtaining the contract from the 17-year-old son are not stated in our study, and are virtually irrelevant. Although, it would be easy to jump to the conclusion that Don was trying to find a legal loophole or deceive the Scuppernong manufacturer, even if this contract was void, voidable or otherwise not legal, one could only point back to the fact that there was an implied contract with Don in the first place. Proverbs 25:8 states “what you have seen with your eyes do not bring hastily to …show more content…
The assumption is that Don would seek compensation for damages incurred for the termination of said business. Sometimes referred to as promissory estoppel, Don may request that there is compensation due to the denying the existence of a contract for lack of consideration and one party, which has given something in exchange for another’s performance (Jimenez, n.d.). We have established that there is a valid contract under the assumption of applied contract; therefore, we must point back the definition of a contract and that it includes the exchange of promises. The Scuppernong grape product manufacture promised to provide the product and in turn Don invested in advertising, which benefited the company. Through either litigation or arbitration Don may attempt to recoup damages for loss of revenue due to the diminished ability to sale the product and cost of
Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.
The four elements of a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the “consideration of each party,” is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is “contractual capacity,” which may or may not be fulfilled since we do not know Sam 's age or whether
The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.
When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are.
After my first conversation with the grape producer I decided that purchasing his company’s product would be to my business’s benefit. The partnership began with my company faithfully receiving Muscadine grapes from Mr. Bre’nard Williams. Each delivery was prompt and at a consistent price. An invoice was sent with each delivery, requiring payment within 30 days. There may have been a few times that a late payment may have been made; however, it was done within 45 to 60 days. I also did not receive any interest or penalties on my late payments. The samples turned out to be very popular with my regular
"A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party" (Mallor et al., 2015, p. 320)
It can also be the promise to pay. For an enforceable contract, the consideration provided must be agreed upon by all parties. In the Jim and Laura case, there is no contract. For a contract to be present and enforceable, an offer must be made. The offer was made as the two parties discussed on purchasing the car and even the party being offered the car left with the car. This offer, however, lacks merit because the proposal was not specific. The two parties did not have a common mind on how to purchase the car. It can also be established that there was no contract mutuality of obligation was not existent (Kurtz & Boone, 2009. The buyers had not agreed to the terms. The terms as explained later by Stan were not the same that Jim and Laura heard in the first instance. Time of agreement is also not detailed. This element has not met at all and, therefore, there was no contract. Consideration plays a big role in law of contract. Businesses are very specific on what ensuring revenues are high all year round. As a result, consideration is critical because it has the ability to tilt profitability of a company. During contracting, considerations must be understood by all parties and agreed upon. In this case, Jim and Laura never agreed on any considerations. They in fact did not know whether there were considerations that were presented to them. This is enough to claim that there was no contract. For there to be a
The plaintiff firm of surveyors bought a second-hand Rolls Royce from the defendants which developed serious defects after 2,000. It was held that the firm was acting as a consumer and that to buy in the course of a business 'the buying of cars must form at the very least an integral part of the buyer's business or a necessary incidental thereto'. It was emphasised that only in those circumstances could the buyer be said to be on equal footing with his seller in terms of bargaining strength.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
(on, 2015) There are five vitiating factors that undermine a contract: Misrepresentation, Mistake, Duress, Undue Influence and Illegality. I believe that the contract between Jerry’s Pizza and Dazzling Dough Company was misrepresentation and mistake on both party end. A misrepresentation must induce the contract but the representees reliance does not have to be reasonable. It will not be actionable therefore if the representee was unaware of the misrepresentation at the time of the contract, the representee relied on his own judgement rather than the statement of the representor, the representee was unaware of the untruth of the statement (however it is not enough that the representee had an opportunity to discover the truth of the
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
A contract is an agreement, either oral, in writing or inferred by conduct, between two or more persons (the offeror and offeree or promisor and promisee) which is usually intended to be legally binding. A contract concerns 3 main issues, firstly, is there a contract? Secondly, is the agreement one in which the law recognises? Thirdly, when do obligations under contract come to an end and what remedies are there if a contract is broken? (Jones,2015). The question at hand surrounds Sam, who had been offered the opportunity to earn some money for university by helping Jo. But when Sam leaves for university, Jo refuses to pay any money. The following discusses whether Sam has a contract and whether he is entitled to be paid.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,