Project 3 - Contract Law

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Southern New Hampshire University *

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Law

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Apr 3, 2024

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CONTRACT LAW Donia M. Pier Southern New Hampshire University Bus-206: Business Law 1 Professor Devine

According to our text, we can define a contract by examining the four elements that are necessary for it’s existence. They are: 1. The Agreement: Consisting of offer and acceptance. The offer is a clear expression of willingness to enter into a contract on specific terms. It must be communicated to the other party, and be sufficiently definite, leaving no room for misunderstanding. The acceptance occurs when the party to whom the offer is made agrees to the offer terms. Acceptance by the offeree must be communicated to the offeror while the offer is still open and in a manner specified by the offer. There must be a genuine agreement by both parties, without undue influence, mistake, duress, or fraud that might invalidate consent. 2. Consideration: Consideration refers to money, goods, services, promises to perform, or promises to refrain from doing something (IE: something of value) exchanged between the contract parties. Consideration ensures that each party receives something of value in exchange for their promise under the contract. 3. Contractual Capacity: For a contract to be valid, both parties must have the legal capacity to enter into a contract. This means that they must be of legal and sound mind. Individuals who lack capacity due to factors such as coercion, intoxication, diminished mental capacity, or who are under the age of legal consent may not be able to form a legally binding contract. 4. Legal Object: This fourth element of a binding legal contract means that, in order for the contract to be legally enforceable, it cannot be illegal or against public policy. Contract between The Friendly Dawg and Landlord Lou The initial lease agreement between Dave Dawg’s deceased father and Landlord Lou constitutes an offer made by the landlord and accepted by the tenant and is documented in writing. Both parties are assumed to have the legal capacity to enter into a contract as there is no indication otherwise. The consideration exists in the form of the monthly rent paid by The Friendly Dawg to the landlord in exchange for the use of the leased premises so that The Friendly Dawg may operate a pet supply store. This is a legal purpose and therefore does not violate public policy.

Suppose any of these elements are missing or defective. In that case, the contract may be deemed void, voidable, or unenforceable, but, by these definitions, there is still a legal contract in place regarding Landlord Lou and The Friendly Dawg. The original lease, however, describes the business as a pet supply store only, without mentioning the sale of live animals. Dave Dawg’s expansion of business activities and inventory to include live animals without explicit permission from Landlord Lou could possibly constitute a breach of the lease agreement. Contract between Sunshine Yoga and landlord Lou Sunshine Yoga claims that Landlord Lou verbally offered to rent the space to her for $300 a month and assured her that she could rent from him forever without risk of eviction. Both parties accepted this verbal agreement. The consideration would be the monthly rent paid by Sunshine Yoga to Landlord Lou Both parties were of the proper legal capacity to enter into a contract so this element was likely satisfied and the leasing of commercial space for a yoga studio is generally a legal purpose. Based on this information, it would appear that there is potential for a valid contract between Sunshine Yoga and Landlord Lou. Enforceability, however, may depend on factors such as presence of witnesses or if there are statutes requiring certain contracts to be in writing. Landlord Lou 1. Potential Rights:  Lou has the right to enforce the terms of the lease agreement, specifying The Friendly Dawg as a pet supply store without the mention of live animal sale.  He has the right to receive rent payments from both The Friendly Dawg and Sunshine Yoga as per the terms of the lease. 2. Claims:  Lou can claim that The Friendly Dawg breached the lease agreement by expanding the business to include live animal sales without his permission.  He could have a claim against The Friendly Dawg as well as Sunshine Yoga for unpaid rent.

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