Should The Contract Obligations Be Legally Able For Enter Into A Contract?

The particular focus of this essay is on how terms are implied. This is central because the courts intervene and impose implied terms when they believe that in addition to the terms the parties have expressly agreed on, other terms must be implied into the contract. Gillies argued that the courts have become more interventionist in protecting the rights of contracting parties thereby encroaching upon the notion of freedom of contract. The doctrine of freedom of contract is a prevailing philosophy which upholds the idea that parties to a contract should be at liberty to agree on their own terms without the interference of the courts or legislature. Implied terms can be viewed as a technique of construction or interpretation of contracts. It has been argued that the courts are interfering too much in their approach to determine and interpret the terms of a contract. The aim of this essay is to explore this argument further and in doing so consider whether freedom of contract is lost due to courts imposing implied terms. The essay will outline how the common law implies terms. The final part of the essay will examine whether Parliament, by means of a statute, or terms implied by custom restrict freedom in a contract. An overall conclusion on the issue will be reached.

Enforceable contract Peter v. Don. Peter will have an enforceable contract with Don if he can show that all the required elements of a contract are present. If there is a contract between the two then it will be governed by the common law requirements of an enforceable contract instead of the Uniformed Commercial Code, which would be used if their agreement had involved the sale of goods. In order for a contract to be formed between Peter and Don the two must react mutual consent Mutual consent can generally be formed through the form of an (A) offer and (B) acceptance. An additional requirement for both parties to show (C) consideration is also

Contractual capacity is defined by the law to mean the ability to understand the consequences of a contract.

Wally, business owner of Windy City Watches is located in downtown Chicago, IL. Business is booming and Wally needs to buy a large quantity of Rolek watches which sell for $50 apiece. He calls Randy Rolek, the wholesaler located in Milwaukee WI. They discuss terms on the phone for a while before coming to an agreement in which Wally offers to buy 100 watches for $25 each. Randy sends over an order form in which Wally states that he is agreeing to purchase watches from Randy for $25 each, but does not include the quantity in which he will buy. Randy sends 50 watches the following week with a note included stating that he has sent 50 watches and will send the other remaining 50 watches within a few days but includes the bill for the full

Contractual capacity is, “The legal capability to form a binding contract. A number of classes of people lack contractual capacity, and these include minors…” (BusinessDictionary.com, 2010). A minor’s capacity to contract and the lack of an employee’s capacity to bind a company by contract could be used in defense against a breach of contract.’ Consideration is necessary for any contract to exist. A promissory estoppel is used when consideration requirements are absent (Kubasek, Brennan, & Browne, 2015, p.250).

Bernie a resident of Richmond, Virginia decides to sale his 2006 Ford Fusion for $13,000.00 and places an ad in his local newspaper on February 1st. After several weeks without any inquiries, Vivian contacts Bernie on March 1st stating she will pay him $12,000.00 for the car. Bernie arranges to meet with Vivian on March 5th to complete the deal. Vivian comes to Bernie’s house on March 10th and says she will give Bernie $12,500.00 for the car; but she needs three additional weeks to come up with the money. Bernie agrees but only if Vivian puts down a deposit. Vivian agrees and Bernie drafts an agreement stated the sale will must take place no later than March 31st. Vivian reads and signs the agreement and

The owner has possession of full faculties and is willing to enter into contracts with a clear understanding of all that is involved in the issuance and acceptance of said contract.

During my research of contract law I discovered a publication that highlighted all the legal aspects of binding legal contracts. There are several reasons that I judge may rule a contract unenforceable, one of which relates to nondisclosure due to lack of capacity, this immediately required more study. According to the publication “It's expected that both (or all) parties to a contract have the ability to understand exactly what it is they are agreeing to. If it appears that one side did not have this reasoning capacity, the contract may be held unenforceable against that person. The issue of capacity to contract usually comes up when one side of the agreement is too young or does not have the mental wherewithal to completely understand the agreement and its implications” (Stim 2000). I knew that Mrs. Doe would try to use her son’s age as a reason not to honor the contract. I personally believe that if Mrs. Doe actually had

1. Competent parties. A court will not uphold a contract entered into by parties the law does not believe have the capacity to take on such a legal responsibility, such as minors or people who are mentally incapacitated.

Finally, the parties must have capacity, which is the ability or authority to legally make contracts. A persons under the age of 18, has a mental illness, or a mental disability, or an intoxicated

The four elements of a valid contract are offer and acceptance, meeting of the minds, consideration and competent parties. The contract must cover a legal purpose or objective as well (Binder, 2012). The objective theory of contracts holds that contract formation is dependent on what is communicated, rather than what is thought by one of the parties (Barnes, 2008).

Having concluded that the July 7, 2009 settlement agreement is enforceable and binds the parties, we must then interpret the terms of that agreement. “Settlement agreements are enforceable as independent contracts, subject to the same general rules of construction that apply to other contracts.” Maslow v. Vanguri, 168 Md. App. 298, 316 (2006). We begin by observing that the interpretation of a contract is a question of law subject to de novo review. Spacesaver Sys., Inc. v. Adam, 440 Md. 1, 7 (2014). Moreover, in Maryland, we employ the objective theory of contracts, under which:

The basis on contractual obligation is a promise, a promise from both parties to perform a duty, or duties in reliance on that promise. This paper will take the stance that Thomas Davitt takes, stating that though mutual assent and consideration are important to a contract, those factors are not the essence of a contract. There is a moral obligation to fulfill a contract, one that is much more than simply words written on paper.

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

Introduction: In this assignment I will go over a few legal terms in relation to contract law. I will also talk about a few precedents that help explain the law.