Contacts are something we come across in our day-to-day lives, most of the time without even noticing it. Whether we are at a restaurant, buying a house or car, or even having a day at the spa. A contract is a written or expressed agreement between at least two parties to provide a service or product and can be legally enforced if drawn up correctly. It is most common for a contract to be written and signed by both parties, but there are other forms of contracts including expressed contract and implied in-fact contracts. In an express contract, all elements are clearly stated either written or orally. Both parties must fully understand the terms and conditions that they are agreeing to. The not so transparent of contracts would be an …show more content…
This exchange of money would bind both parties to the agreement. Consideration is the next element of a contract. It is something of value that is exchanged between the parties involved in the contract in the form of money or promise to do something or perform. In order to qualify as consideration, it must be bargained-for and legally sufficient. In this case, Stan (promisor) offers Jim and Laura (promisee) to hold the vehicle with a deposit of $100, Jim and Laura accepts, the $100 is the consideration (value) for the hold of the vehicle (performance). The consideration meets both qualifications because there is not a legal obligation already in place for the offer and it was bargained-for by the exchange of promise and something of value. A contract must be for a legal purpose and not for any purpose that may break any laws. A court will not back up and support a contract that has any intention of breaking the law. Based on the information from the scenario, neither Jim, Laura nor Stan Salesman appear to have any illegal intent when entering the potential contract. Jim and Laura were legitimately looking to replace their current vehicle that had been giving them mechanical problems and to use it to travel from work and school. Being of legal age and of sound mind is the capacity of the contract. Capacity means a person’s legal ability to enter into a contract. When looking at who can enter a contract a few
A contract is an agreement that creates an obligation that is enforceable by the law. The law has clear guidelines that before there exists a contract that will be binding, there has to be an offer, acceptance, mutual obligation and all parties should be of sound mind and by law be of legal age. A contract can either be written or spoken. Assuming that the buyers were at the required age went to the car dealership looking to purchase a new car.
A legal contract arises when there is an offer, acceptance of that offer and also a sufficient consideration to make the contact valid. There are five essential elements that make a contract legal and these includes;
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 an exchange of promises or a promise in exchange for performance, for breach of which the law gives a remedy, per Restatement 2nd of Contracts §1. For the contract to be valid there has to be mutual assent, parties mutually agree upon the same specific thing. Per Restatement 2nd of Contracts §54, there are two types of contracts: unilateral, where acceptance is by performance, and bilateral, where there is an exchange of mutual promises and both of the parties have the rights and duties.
Contracts can be defined through promises between parties that are enforceable through law. We know that both parties agreed verbally, an oral agreement was made to hold the car for one day with a hundred-dollar deposit and Stan agreed to the terms that the deposit was refundable. Contracts can be in in two form which are written or oral. Based on the elements of contracts, many fundamentals factors are considered mandatory to form a contract that is binding on parties and are primarily outlined through the following:
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
Contract is defined as an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law. For purposes of this chapter, we are concerned with agreements to buy and sell some type of agricultural product. Contracts 101 You should be concerned about contract law because it determines how parties to the contract will need to keep the promises they make. Although very few contracts ever end up in court, if the parties to a contract disagree on something and are unable to resolve the disagreement, they may have to resort to the judicial process. This means that as the parties negotiate a contract, they need to consider how a judge might ultimately interpret it. For a contract to be enforceable, it must involve:
Marshall received a signature on a contract from a seventeen year old minor in which he hopes to enforce. From a legal standpoint, minors have a limited ability to enter into contracts. The seventeen year old minor employee can void the contract he signed at any time. Minors have the option to do this because of laws made to protect them
A contract is an official agreement between two parties. There are different types of contract, such as sale and purchase of a business agreement, partnership agreements, lease of business premises, lease of plant and equipment and employment agreements. The format can vary too. It can be face to face, written, or distance selling. The specifications of a contract involve offer and acceptance, the intention to create legal relations, lawful considerations, capacity and legal formalities such as terms and conditions.
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
A contract is a written or spoken agreement between two or more parties that involves the exchange of two promises, which is intended to be enforceable by law. The four basic elements are the offer, consideration, acceptance, and mutuality. When elements are broken down individually, each one is just as important as the next. If one of these elements are broken or misunderstood, it could mean result in the contractual agreement becoming not valid and end in lawsuit. The overall purpose of the contract is for legal purpose and to keep a order within an agreement.
For a contract to be enforceable, it must satisfy six essential elements. The first element is that there must be an offer and an acceptance of that offer. In this instance, the seller advertised the replacement windows services, the homeowner received an estimate, the two agreed to the estimate, signed a contract and exchanged a deposit, and the seller installed the windows. However, although the seller advertised a 'lifetime guarantee as long as you own your home,' this was not written into the contract. The homeowner also said that he or she was not aware that the windows were manufactured out-of-house and only installed by the contractor, not made by the contractor (Introduction to contracts, 2007, PowerPoint: 3).
The last requirement of a valid contract is that its provisions be legal. If a
Contractual Capacity is the legal ability to enter into a contract. Minors have particular rights and obligations established by the court when it comes to contracts. Once a person reaches age 18, they are considered a legal adult in every state in the nation. In addition to minors, other persons are able to avoid contracts. Mentally impaired and intoxicated people, convicts, and aliens lack the capacity to enter into a contract.
The official definition of a contract is “a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.” More concisely a contract is an agreement that two parties can enforce in court. Within the contract, two parties must be aware of all the elements within it for the parties to make it a valid contract in court. A valid contract could be considered the basis of all types of contracts.