When it comes to contracts, there are certain elements or requirements, which need to be met in order for the contract to be valid. Defined, a contract is “an agreement that can be enforced in a court; formed by two or more parties who agree to perform or refrain from performing some act now or in the future” (Hollowell & Miller, 2014, p. 110). With contract law, there is the enforcement of promises made between two parties, even if made in private. Additionally if a promise is made, there is the possibility of the obligation falling into a moral liability rather than a legal liability. All in all, when it comes to business agreements, contract laws will apply to avoid any possible problems that may arise. As mentioned earlier, there are certain requirements which must be met for a contract to be valid; requirements needed include agreement, consideration, contractual capacity and legality. For an agreement to be valid there must be an offer and acceptance present. In other words, there must be an intent known and understood for the contact to have an agreement. With that being said, there is no …show more content…
Since the elements were met to satisfy an actual contract being made, with promises albeit moral and legal, the behavior in which Johnny executed warrants a breach of contract on his part. Also to note is Johnny is not a merchant under the Uniform Commercial Code (UCC), which defines a merchant as “a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction” (American Business Law Journal, 1970). Had Mark been identified as a merchant, he would have been held to a different set of rules and Johnny would have been protected, but Mark is a casual seller and not held to a higher standard of
Walker, Takem’s has the statutory law of contracts in his favor. In a contract, the seller and the purchaser have certain rights and obligations. Four basics must be met for a contract to be created (Chrisman, 2014). First, the offer has to be made. In the case at hand, the door-to-door salesperson made an offer of a computer to Ms. Walker. Second, the consideration has to be accepted. Ms. Walker accepted the offer to purchase a computer. The third step is capacity. The purchaser must be legally capable of entering into a contract; minors and the mentally incompetent are excluded in this case. Takem’s has given Ms. Walker the computer in exchange for her payments on her store account. Finally, the intention to enter into a contract has to be present. Ms. Walker signed a bill of sale, a security agreement, and a negotiable promissory note- which is an unconditional promise to pay a certain sum of money at a certain time in the future. Though Takem’s has the advantage to combat her claims, Tommy needs to ensure that his salespeople have not made any false statements or misrepresentations to Ms. Walker as this could have legal implications for the store and against the contract (Vaccaro, 1987). Ms. Walker is legally bound by the contract she agreed to in exchange for the computer; however if there has been any misrepresentations or false statements Ms. Walker may be able, with legal assistance, to call the contract into question
There were also no terms or conditions to perform, nor a time or event of completion of performance. “USLegal.com helped further explain the requirements of a legally enforceable contract by providing the following elements that must be adhered to, in order for a contract to be legally binding: an offer; 1. an acceptance of that offer which results in a meeting of the minds, 2. a promise to perform, 3. a valuable consideration, 4.
...useless car to a junk yard to recover some loss, but the difference of the re-sale of the junk-car would be a significant loss. Though there were no adequate assurances to the contract, anticipatory repudiation is the only probable remedy for Jack. However, the outcome would weigh on the predominant factor test, which is met because Tom is covered as a merchant because he is operating in his usual daily business, and Jack is the buyer. The sole purpose of the contract was for Tom to sell Jack a car, and for Jack to buy a car from Tom. The UCC, though less stringent than the statute of frauds, does effectively regulate commercial transfers allowing the free market to operate without diminishing the integrity of trade.
A Theory of Justice is the magnum opus of 20th century social contract theorist and political philosopher, John Rawls. A bit of background into this work is that social contract theory had fallen out of favor with political scientists and philosophers since the last 18th century, with the success of the American Revolution and the apparent triumph of John Locke and Democracy. However, with the advent of modern globalization, the emergence of America as a superpower, but the growing concern of socio-economic disparity necessitated a revisiting of the social contract, what it means, how societies and governments were best constructed.
The area of law that is required in order to form a legally enforceable contract is agreement.
If the elements of a contract did exist between these parties, there could still be some possible reasons why a contract might not be valid based on facts not present in the scenario. For example, if Sam was a minor at the time he made the agreement with the chain store, the contract would not be valid because of contractual capacity. Per the law a contract by minors is voidable by the minor itself. Other reasons that would deem a contract invalid are lack of genuine assent, which means that the accepting party entered the agreement under fraudulent circumstances, duress, undue influence and/or misrepresentation. Moreover the validity of the contract could be hindered due to lack of proper form. This typically refers to
Based on common law and precedent, the English law of contract has been formulated and developed over a number of years with it’s primary purpose to provide a regulated framework within which individuals can contract freely. In order to ensure a contract is enforceable there are certain elements which must be satisfied, one of which is the doctrine of consideration. Lord Denning famously professed; “the doctrine of consideration is too firmly fixed to be overthrown by a side wind” . This is a crucial indication that consideration has long been regarded as the cardinal ‘badge of enforceability’ in the formulation and variation of contracts in English common law.
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.
Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.
Without having a clear understanding of how it works it could cause a misunderstanding and very well make the contract invalid, causing legal issues later on down the line if there is no consideration from both parties. A business person could suffer a loss due to lack of consideration if a court was to rule whether or not a contract is unenforceable. Either party may not fulfill their side of the agreement or the court may file a breach of contract against the opposing
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)
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 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,
A valid contract is an agreement including promises made between two or more parties with an intention of certain legal rights and legal responsibility that are enforceable. For there to be a contract – that must contain four essential elements- offer, acceptance, intention to create legal relations and consideration.
From elementary to high school and even college students are compelled to attend school all around the world. In schools students not only learn general education but learn a lot about themselves. It is said that in the first twenty years of an individual’s life are the years that the individual finds out who they really are. An individual’s moral beliefs are one of the most personal and complex pieces of that individual. There are several great moral theories that could be taught in school, but to only choose one is very difficult. Some of the most known moral theories are Utilitarianism, Virtue Ethics, Kantianism and even Social Contract Theory. All of these theories were developed by some of the most incredible philosophers of all time.