Acquisition Law and Oral Contracts

The validity of an oral contract depends on the jurisdiction, in most cases they are treated like any written one, but some situations (such as when exchanging real property) may require physical evidence such as a written agreement to back up the oral one. For oral contracts to hold water (become enforceable) they must be done correctly, like making sure there is a witness to the deal-making.

This one sounds like an easy one to remember and watch out for but some negotiators of contracts are not scrupulous or honest. As such, any wise person entering contract negotiations needs to enter the fray prepared. Smart negotiators are always on the lookout for anything fishy. If it looks too good to be true it quite possibly is and before affixing a name to a contract, it needs to be verified as much as is reasonable or possible to ensure that what is being promised will be delivered. For example, buying a car without a trusted mechanic inspecting the car for obvious signs of problems is not smart and this is true of any other potential negotiation as well (Layng, 2009).

An oral contract is enforceable unless its subject matter comes within the statute of frauds, an English Law adopted in the United States, that requires certain contracts to be in writing. For example, a contract to sell real property, to be enforceable, must be in writing to comply with the statute. An oral contract to sell Personal Property for an amount less than that set in the statute does not fall within its limits and, therefore, is enforceable without being reduced to a writing. The Uniform Commercial Code governs the enforceability of oral contracts in sales transactions

Our society today depends upon the free exchange of goods and services in the marketplace at every opportunity. The interactions we encounter in the market depends on voluntary agreements between the parties, which can never become binding without a legal contract.

In this paper the author is going to explain the valid legal elements of contracts. She is going to define the objective theory

In this problem Finnin, McPherson and Wright (FMW) expressed to negotiate on buying the Honda-Toyota dealership on Lindsay. Based on the proposed agreement, FMW should pay a certain amount of $1.1million of the stock of Lindsay. And so, this case should be based under the common law. Common law governs the contracts for services, intangible assets and other contracts not governed by the Uniform Commercial Code (Mallor, Barnes, Bowers, Langvardt, 2013). Formation of the contract under the common law includes an offer, acceptance and consideration. And in order for an offer to be binding the offeree (the person to whom the offer is made) must accept the offer. An offer gives the power of acceptance to another party and includes the agreements essential elements, which must be definite and certain.

As one can imagine, the business atmosphere is filled with agreements between businesses and individuals. Written documentation of contracts is preferred and used most of the time, with a small portion of businesses using oral agreements. Contracts that are written to provide individuals involved with legal documentation of the expectations held for both parties and how adverse situations will be resolved. Companies use contracts as a tool to protect them and their resources. Although business contracts are legally binding documents, their effectiveness relies on an “ethical framework to fulfill the obligations of the contract.” The owner of the produce company and Marshall Petersen, a local health foods business owner are in desperate

Contracts, business, and laws are three simple little words, but when put together they have a substantial impact on our everyday lives. Below we will discuss three case studies. The first case is between Chris, Matt, and Ian vs. Donald Margolin, who was injured when he used an aftershave lotion that he bought off the internet called Funny Face. The second case is between Sam, his landlord, and a national chain store. Sam is being accused of conducting business from his apartment and going back on a verbal promise. In the last case is two lifelong friends who decided to join in a partnership and open up a sporting goods shop. Therefore, before the appropriate court can proceed with the first case, the court should take into several considerations around the rules of jurisdiction, alternative dispute resolution (ADR), and whether or not corporation/or corporate offices can be held for the criminal or potential act. In the second case before the court can rule the court should determine the various elements of a valid contract, if a quasi-contract exists, a promissory estoppel, and the rights an obligation of a tenant would prevail on Sam 's claims. Finally, in the third case between Jeb and Josh, they should determine the type of business entity that will overall protect their business and personal needs.

Essential criteria must be present in order for a consumer contract to be legally binding by law, a process of offer, acceptance, consideration, and intention to create legal relations must be satisfied. Offer involves the buyer making an identifiable offer to a seller for goods or services, once the seller accepts the offer, acceptance has

This paper will discuss the four elements that make up a valid contract and the objective theory surrounding contracts. This paper will discuss how the objective theory applies to the Leonard v. Pepsico, Inc. case. The paper will also discuss how the court reached its decision to claim that there was not a valid agreement made between the two parties, and it will discuss why all advertisements are not considered offers.

A contract is defined as an enforceable agreement between two parties, where a party makes either a promise for a promise (bilateral contracts), or a promise for an act (unilateral contract). In contract law, one of the main bases for the enforcement of promises is consideration. Consideration is basically the value agreed upon in exchange for a promise. Additionally, consideration consists of two elements, which are legal value and that there must be a bargained for exchange. The legal value supports for a contract when either the promisee suffers a legal detriment (loss), or the promisor receives a legal benefit. In the other hand, to be enforceable a contract needs to arise from a bargained agreement. Moreover, all written contracts are assumed to be supported for consideration. Nowadays, the court system uses the Statute of Frauds to help resolve disputes concerning fraud and perjury when dealing with the performance and non-performance of contracts. The court system will also use reasonable exceptions to the Statute of Frauds, such as the Promissory Estoppel, to enforce contracts that lack of consideration.

The law was in favour of Kemp throughout the course of the case, for the lack of a written contract detailing an agreement, which would therefore be forcible by law, had meant Kemp could withdraw his royalty payments from the rest of his band members whenever he saw fit. Part of the plaintiff’s argument was that there was an agreement in place, despite it not being a written one (Grice, 2015: 90). Oral contracts have historically been the traditional method of agreement, where the typical “handshake” was a mark of trust, and was an acknowledgement that a deal had been made. Oral contracts are generally not as reliable as written contracts as elements of the oral contract can be lost to human memory, making disputes difficult to solve in court. (MBA Business Media and Society, 2006). This is not to say that oral contracts have no weight in court, for they could be just as credibly as a written contract provided there was sufficient evidence to support it.

Oral contracts are contracts made by talking with each other and there is no written agreement. In all but simplest of transactions, there will be some negotiations before a contract is made. Companies making a deal for one supply the other may hold detailed discussions about price, quality contract and delivery; when hiring a firm to put in the central heating might ask how long the job will take, what the price includes and who will do the work; and if it’s buy a tin of paint, a computer or a set of shelves, for example, the manger will want to know whether they are suitable for their particular purpose. In all these cases, oral statements will be made. Problems can arise when, although both parties agree that a certain statement was made, they disagree on whether that

Introduction: In this assignment I will go over a few legal terms in relation to contract law. I will also talk about a few precedents that help explain the law.

1. Advise on the types of commercial contract that businesses enter into on a day to day basis; 2. Advise on the terms needed in a sale of goods contract in order to protect the seller’s position in respect of price, payment and delivery; 3. Apply simple terms in a sale of goods contract dealing with price, payment and delivery; 4. Advise on the principal remedies available to the unpaid seller of goods; 5. Identify the terms which need to be included in a retention of title clause in order for it to work and also other terms which may be included, and advise on the effectiveness of the latter; 6. Advise on the practical application of a retention of title clause.