Business Law Problems

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1. What are the four elements of a valid contract? A contract is an "agreement between parties, with terms and conditions that describe the agreement that constitutes a legal obligation" (All Business). A valid contract requires four elements and these are: a. Mutual agreement – there must be a meeting of the minds between parties. There should be an offer and an acceptance. There should be an agreement to enter into the contract b. Consideration - meaning that "every party is conferring a benefit on the other party or himself sustaining a recognizable detriment, such as a reduction of the party's alternative courses of action where the party would otherwise be free to act with respect to the subject matter without any limitation"…show more content…
Cost of contracting will be lower which will definitely impact businesses. Another impact of electronic contracting is the impact on government regulations. With the advent of this new kind of contracting, governments would also have to update their regulations to adapt to electronic contracting. In order for electronic contracting to work, the necessary support and infrastructure should also be implemented. There should be firmer and specific laws to regulate these kinds of transactions. 2. What are the potential pitfalls you see with electronic contracting? One major pitfall of electronic contracting is the potential legal impact that can ensure from such negotiation. Currently, not all states have an electronic contracting law. As such, these contracts may not be recognized by everybody. Also, the "admissibility of evidence of an electronic record or signature may be unconstitutional; contracting parties should consider adding clauses expressly providing for the admissibility of the constituent electronic records" (Reid & Priest). Another pitfall that could ensure from electronic contracting is the huge possibility of fraud and mistake which is minimized in traditional contracts. Also, ecommerce information has the potential of being used improperly. Assignment Name: Unit 4 Discussion Board 1. Is the International Court of Justice the first world
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