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Contact Is The Foundation Of Every Kind Of Business

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Contact is the foundation of every kind of business (formal or informal) that is being conducted between parties. According to Daniel V. Davidson, Brenda E. Knowles, and Lynn M. Forsythe in their book title “Business Law: Principles and Cases in the Legal Environment” a contact is in our everyday lives such as when you are rent an apartment in which a lease or an agreement is sign; when one is employed a contact is made by entering an employment agreement; when one apply to a college a contact is made to pay tuition (Davidson, Knowles, & Forsythe, 2004). So a contact is a “legal binding and legally enforceable promise, or set of promise, between two or more competent parties” (Davidson, Knowles, & Forsythe, 2004). There are also different…show more content…
In the case of Jim and Laura, the salesman thought there was a contact between him and Jim and Laura by them making the $100.00 deposit. I think Jim and Laura have the right go for another car. This is because there was no statement or document mentioning that any amount of deposit. Another element of a contact is acceptance. This is the result of an offer made to the contact by the offeree. An acceptance must not change the terms of an offer. If it does, the offer is rejected. A material change in a proposed contract constitutes a counteroffer, which must be accepted by the other party. In the reading, Jim and Laura did not accept to buy the car however, the made a consideration in getting the by leaving the $100 with the salesman. So the acceptance between Jim, Laura and the salesman is rejected. Consideration which is another element of contact consists of either a benefit to the promisor or a detriment to the promise. It is a present exchange bargained for in return for a promise. It may consist of some right, interest, profit, or benefit that accrues to one party, or alternatively, of some forbearance, loss or responsibility that is undertaken or incurred by the other party. It is not necessary for a contract to be supported by a monetary consideration. For example Jim and Laura made consideration by leaving the $100.00 but later change their mind about the deal. the contract that
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