If A Party Negotiates A Bad Deal?

A contract is a legally obligatory promise or set of promises (Bagley, C. 2013). If this promise is broken, either party involved can be legally responsible and take the other party to court. There are four basic elements in the creation of a valid contract. The first consist of an agreement between the parties involved, by an presented offer and acceptance. The second states that the parties’ promises must be supported by something of worth, known as consideration. The third advises both parties must have the ability to enter into a contract. The fourth element states the contract must have a legal purpose (Bagley, C 2013).

The "something of value" may be either something that the person actually hands over (that they would not otherwise be obligated to hand over) or some right that they give up (that they would otherwise have been entitled to exercise). For example, if you agree to buy a car for cash, you agree to deliver cash to the seller, and the seller agrees to deliver the car to you. In that situation, there is legal consideration, or sufficient value, for the agreement to be enforceable. Another example is a mutual release of claims. Suppose you accidentally hit a parked car, and you agree to pay the owner of the car £500 in cash to settle. In that case, you agree to deliver cash to the owner of the car, and the owner agrees that he or she will not file a lawsuit against you. (In such a situation, always get a written release of liability, or "release," from the owner of the car to prove that you have settled up.) The consideration from your side is the cash, and the consideration from the owner's side is that he or she gave up the right to sue you for the damages. Although the owner didn't give up anything physical, there is consideration to support the agreement because the owner gave up a legal right. Source: (http://onlinelegalforms.com/legalforms/freedraftingtips.html#consideration) Dunlop v Selfridges (1915) Hol. Defined consideration as ‘An act or forbearance of one party or, the promise thereof, is the price

A contract is formed when an offer by one party is accepted by the other party. Consideration is the price paid for the promise of the other party. The price must be something of value, although it need not be money. Consideration may be some right, interest or benefit going to one party or some, losses or responsibility given, suffered or undertaken by the other party.

A contract is a promise between two or more parties that the law recognizes as binding by providing a remedy in the event of breach. In order for a promise to be enforceable it must be supported by consideration. Consideration can be defined as a bargained for exchange between the promisor and promisee; a promise can not be considered a contract without consideration. Common law states also require mutual assent to exist for a contract to be enforceable, this means that there must be an offer and an acceptance of said offer. For example, if a promise is made between two consenting people and one of those

Furthermore, the agreement, is where the actual contract is offered and accepted by two parties (Cheeseman, 2010). The consideration is the legal form of payment or exchange within the contract such as money, property, or provision of services (Cheeseman,

Kellerher Funeral Home, Inc. is claiming that a breach of contract has occurred in as much as the work completed by Gonzaga Construction was of sufficiently poor quality as to require rework that cost $4,700. Further, though Kellerher controlled the delays in construction due to his need to continue business operations, he is charging that the lost profit is due to construction delays brought about by Gonazaga's work on the site. The contract language did not stipulate how the interests of the going concern would be balanced against construction project schedule. Indeed, no date of completion was specified in the contract, and a two-week interim between the filing and the commencement of construction is a reasonable period of time for material procurement and arranging for labor. Moreover, the poor workmanship allegation was not communicated during the construction project, leaving Gonzaga with no opportunity to correct any problems with workmanship. For both parties to the contract, it is generally understood that a business contract agreement for services includes some intangibles, such as cooperation, quality of work, reliable communication, experience, and so forth. An essential element in a contract is consideration, which refers to a benefit to the promisor or a detriment to the promise. In other words, consideration is an exchange that is bargained for in the present in return for

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

The buyer and the seller must each exchange something of value, which is referred to as consideration. In the case of the a

Consideration is a promise or performance that the promisor demands as the price of the promise. Past consideration is something that has been performed in the past and which, therefore, cannot be consideration for a promise made in the present. Promises made to another based on moral obligation lack consideration and are not enforceable. Services performed by one family member on behalf of another family member are presumed to have been rendered in obedience to a moral obligation without expectation of consideration. An example of past and moral consideration would be the hypothetical we are discussing. A binding contract does not exist between Gerwin and Baker because the element of consideration is missing. The consideration for Gerwin's

Another element of a valid contract is consideration moving to the contract. In order for a valid contract to exist, both parties must agree to some type of valuable obligation

However, consideration is a concept that has no real equivalent in French contract law. According to the Common Law systems, a promise is only biding when there is something in return.

for it to qualify as a proper contract in the eyes of the law: offer

Contractual agreements are supposed to be consensual, and freely entered into by the parties involved. Therefore, ‘before a court enforces a relationship as a contract, the courts must have a reasonably certain basis in fact to justify binding the parties to each other.’ (St. John’s Law Scholarship Repository, no date). Resolution of whether a contract was intended to be legally binding is not determined by what the parties themselves thought or intended. Rather, a more objective stance is taken by the courts. This is known as the objective theory of contract, and essentially enables ‘the courts to look at external evidence (what the parties said and did at the time)’ (Poole, 2006, p. 34), as to objectively indicate the parties’ intentions

other in order to form a contract, the value of the consideration need not be

Consideration can be classified as one party expect to get benefit from other according to the act performed by parties with a contractual deal. The benefit can be something valuable such as product or service and not only the money. It can be divided into 3 type of consideration which is executed, executor and past consideration. Executed consideration defined as when the promise carried out and thus the act has been carried