Anatomy of a Contract Essays

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When most Americans perform an act that is against the law, they do not even realize what the consequences are of their actions. There are a lot of people that do not know the extent of the law and what technically is and is not against the law. A contract is an agreement that can be enforced in court and is formed by two or more parties who agree to perform or to refrain from performing some act now or in the future (Miller, Cross, and Jentz 289). In other words, it is a set of legal promises between two or more people or businesses. Contract law includes the elements of a contract, genuineness of assent, fraud, duty to disclose, disaffirmance and good faith. In order for a contract to be valid, there are essential elements that it…show more content…
The promise given by the promisor must induce the promisee to incur a legal detriment either now or in the future, and the detriment incurred must induce the promisor to make the promise (Miller, Cross, and Jentz 303). The next element of a contract is legality. This means that the contracts purpose must be legal and not against the law in any way. A contract to do something that is prohibited by federal or state statutory law is illegal and is void from the outset and thus unenforceable (Miller, Cross, and Jentz 306). There are two types of illegal contracts: contrary to statute and contracts contrary to public policy. Contracts contrary to statute include those to commit crimes as well as contracts that violate other laws, such as state gambling and licensing laws (Miller, Cross, and Jentz 310). Contracts contrary to public policy include those that restrain competition, are unconscionable or release a party from liability no matter who is at fault (Miller, Cross, and Jentz 310). It is important that all aspects of a contract are valid with the law.
The final element of a contract is capacity. Capacity is when the parties have the legal ability to enter into a contractual relationship (Miller, Cross, and Jentz 304). To determine if a person or party is able to enter a contractual relationship the courts look at the effect of youth, intoxication, and mental competence. Generally
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