The first issue is whether a contract between Sonya and Camille exists. Strictly from the perspective of elements of contract, there likely is a valid contract. However, because the contract is subject to statute of frauds, it is not likely enforceable unless exception applies. The basic elements of a valid contract are: (1) offer; (2) acceptance; and (3) consideration. Offer is an objective manifestation by the offeror to execute a contract which provides the power of acceptance to the offeree. (Miller, 2013). Conversely, acceptance is an objective manifestation by the offeree to accept the contract, thereby creating a legal and valid contract between the offeror and the offeree (Carlill v. Carbolic Smoke Ball Co., 1892). Lastly, a consideration …show more content…
As an objective standard, it is highly likely that Camille has offered Sonya to provide sweaters and hats. Sonya has accepted the offer by agreeing to make each sweaters and hats for $100 each. The consideration is that for Camille’s $5000, Sonya will provide the 500 sweaters and matching hats. Strictly speaking from the elements perspective, this is a valid contract. However, the issue is that there was no written agreement, which means this is not likely enforceable unless exception applies. Agreements that are subject to statute of frauds must have the agreement (1) in writing; (2) signed by the party to be charged; and (3) contains the essential elements of the contract. (Miller, 2013). Essential elements are parties, price (unless it is a U.C.C. contract), quantity, and the subject matter. (U.C.C., 2003). Examples of statute of frauds agreement include (1) real estate transactions; (2) suretyship; (3) one-year contracts; (4) UCC contracts worth $500 or more; or (5) marriage. (Miller, 2013). Lastly, Uniform Commercial Code governs for movable goods. (Miller,
a) Given that Eva and Maria entered a written contract supported by a legal document for a price agreed on $75,000 for rendering decorating services, there is consideration. Both parties agree upon a price and this contract verifies validity.
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
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 primary purpose of the “Statute of Frauds” (SOF) is to protect the interests of parties once they are involved in litigating a contract dispute (Spagnola, 2008). The relevant statutes are reliant upon state jurisdictions to determine whether the contract falls under the SOF, and whether the writing of the contract satisfies the requirements of the statute of frauds (Spagnola, 2008). However, all contracts are not covered under the SOF. In essence, for a contract to be deemed as legal by definition of the SOF, there must be verification of the following requirements for formation of the contract, which are as follows: (1) There must be least two parties to the contract, (2) There must be a mutual agreement and acceptance on the price to pay for goods and services offered, (3) The subject matter or reason for entering the contract, must be clearly understood by all parties to the contract, (4) and there must be a stipulated time for performance of duties under the contractual obligations (Spagnola, 2008). Lastly, there are five categories of contracts that are covered under the SOF, which are as follows: (1) The transfer of real property interests, (2) Contracts that are not performable within one year, (3) Contracts in consideration of marriage, (4) Surtees and guarantees (answering to the debt of another), and (5) Uniform Commercial Code (U.C.C.) provisions regarding the sale of goods or services, legally valued over five hundred dollars ($500.00) (Spagnola, 2008).
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
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.
1. (A) Yes, an acceptance for the offer was communicated between Margaret and Frank. Margaret saw Frank’s offer for the lawn mower, and Margaret said that she would buy it for the asking price of $200. Since Margaret did not bargain for another price, and used the words “I will,” she indicated that she accepted the offer that Frank had originally advertised.
Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form
Various elements must be present to prove that a valid contract exists between Sam and the chain store. The four elements to a contract are agreement, consideration,
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.
An offer can be made to one person or a group of persons or to the world at large. The offeror is bound to fulfil the terms of his offer once it is accepted. The offer may be made in writing, by words or conduct.
For this contract to be legally binding, six tenets must be fulfilled. First, the defendant expressed an intention to establish a legal relationship by making a proposal in writing and expecting a response in writing as well, which was fulfilled after the plaintiff accepted all the terms given by the defendant. Secondly, the defendant made an offer in the letter and the plaintiff accepted the offer, including all other terms therein (Willes & Willes, 2012). Thirdly, the plaintiff expressed acceptance of the offer through writing. Also, the plaintiff did consider the terms of the offer by looking at the market price movement and accepting the terms given in the offer (Psarras & Zelinger, 2010).
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.
The issue in this case is whether there is a legally binding contract between Roland and Bernie. The things that needs to be considered is whether there is an agreement between Roland and Bernie. If there is an offer and acceptance, then there is an existence of agreement. According to Section 2(a) of the Contract Act 1950, offer can be defines as when one person implies his/her willingness to another in order to acquire their consent. (Abdullah et al, 2011) The person who make the offer is known as ‘offeror’ or ‘promisor’. (Lee and Detta, 2009) An offer can be made in the method of orally, by conduct, writing or by the mixture of these forms. An offer must require an effective communication with offeree. The formation of contract when offeree accepted the proposal. (Dass, 2005)
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,