A contract is an agreement which normally consists of an 'offer ' and an 'acceptance ' and involves the 'meeting of the minds ' or consensus between two or more parties with the intention to create a legally enforceable binding contract. Therefore in this essay, the four core elements needed for the formation of a contract such as offer, acceptance, and Essay on Contracts. Words6 Pages. Contracts A contract is formed between two or more parties. In order for a contract to be legally binding there must be offer and acceptance. This simple basis for a contract is not as clear cut as it first appears. In certain circumstances it is often necessary for the two parties to the contract to communicate via post or by other indirect means · A contract refers to a voluntary agreement between two or more parties that is lawfully enforceable as a legally binding agreement. There are various elements of a contract that must be met for any contract to be legally binding between the parties involved. These elements include; offer and acceptance, consideration, capacity and competency, mutual
Contracts Essay ⋆ Business Essay Examples ⋆ EssayEmpire
A contract is an agreement among two or more parties. It includes a promise, or mutual set essay on contracts promises, freely agreed to and in exchange for something of value. Once properly set in place, the agreement will be enforced by the court. We will now take a closer look at how contracts are formed, how contracts are voided and how contracts are enforced by the courts. A contract is formed when the two essential contract elements are in place: mutual assent and consideration.
Mutual assent refers to an offer made by one party, plus the acceptance of this offer by the other party. Consideration is something of value: Each party must promise to give something of value to the other in order to bind the contract. Memorializing it on paper will make it more certain to be enforced in court, but an oral contract is as legally binding as a written one.
When determining if a party has made or accepted essay on contracts offer, essay on contracts, the courts use an objective interpretation of contract formation, essay on contracts.
The court considers: Would the reasonable person believe she or he had essay on contracts entered into an agreement? The creation of a contract begins with the offer. In order to fulfill the legal definition of an offer, it must convey that the one making the offer the essay on contracts has a serious intention to enter a contract; to be bound to the agreement if the offer is accepted.
The courts employ their objective standard here: Was it reasonable to believe that the offer was sincere? The key characteristic of a legal offer is its completeness: It contains all the essential components of the deal and nothing of substance remains to be negotiated. It should be specific in terms of quantity, price, and description. It should state who may accept and spell out the appropriate manner of acceptance, including the time limit for acceptance.
And it must be communicated to the potential buyer offeree. An offer is not an offer until the potential buyer hears it. The offeror is the master of the offer: She or he is free to revoke the offer at any time prior to a communication of acceptance, even if the offeror has stated that the offer will remain open. The offer is now null and void, even though we are still within the 90 days.
As is often the case within the law, this general rule is subject to certain limits. The offer may not be revoked if Bighits gave something of value in order to hold the offer open, essay on contracts. Now you may no longer revoke your offer to sell the recording. Both parties give something of value to bind the deal: Bighits gave cash; you gave up your right to sell to anyone but Bighits.
All the elements of a contract are in place and the courts will enforce it as such. Acceptance of the offer will complete the requirement of mutual assent. The court will not be moved by a statement that one did not intend to accept if the offeror was justified in believing the offer had been accepted. Just as an offer must conform to certain standards to fulfill the legal definition of an offer, an acceptance also must meet certain standards.
As the master of the offer, the offeror sets the specifics of most of these standards. The offeror controls when the offer may be accepted. The offer may normally be accepted until the offer is overtly essay on contracts or until the end of essay on contracts stated life of the offer i. The offeror also controls how the offer may be accepted, determining what medium should be used to communicate the acceptance, be it fax, mail, or some other means. There is an automatic implication that whatever medium was used to make the offer is an authorized medium.
If an unauthorized medium is employed, the acceptance essay on contracts not binding until it is received. Thus, if essay on contracts U. mail is authorized, essay on contracts, an acceptance is binding the second it is dropped into a mailbox, and the offer could not be revoked while the letter was in the mail. However, if U. mail was not essay on contracts, the offeror could revoke the offer while the letter was in transit.
It was delivered via an unauthorized medium and would not become binding until received. One may not accept an offer while simultaneously attempting to alter the terms of the offer.
Any attempt at alteration converts the acceptance into a counteroffer. Sam is now the recipient of an offer that he is free to accept or reject. For example, Dave could express dissatisfaction with the deal and it would still be an acceptance, essay on contracts. government safety guidelines. The sine quo non of any contract is consideration. It is the glue that holds the contract together.
Consideration is something that is a a detriment to the one accepting, b induced by the one offering, and c given in exchange—it is a promise for a promise. When a court decides if something does or does not act as consideration, the key is the detriment to the one giving the consideration, not the benefit to the one receiving.
An example will clarify why the law looks at it this way. After all, I derived no benefit from essay on contracts behavior.
Therefore I owe you nothing. A court will not allow August to weasel out of his obligation because he did not benefit.
August was the master of this offer. The law will not allow him to rewrite the terms when the moment comes for him to perform.
August also loses if he argues that Neal suffered no loss by abstaining. Essay on contracts sacrificed a clear legal right—the right to consume alcohol.
Giving up this right is a legal detriment to Neal. That consideration essay on contracts the entire contract binding on both parties.
The issues here fall into two categories. The first deals with essay on contracts parties involved. The basic suppositions of fact that support the contract may have been misunderstood or may change through no fault of the parties.
An adult contracting with a child will be held to his promises. If you form a contract with one who is mentally incapacitated—either by level of IQ or level of intoxication—the law is not so clear. Generally speaking, if you were reasonable in assuming that the other party had the capacity to contract, the contract will be enforced. But if you knew or should have known that the other party may be compromised, that other party essay on contracts be able to void the contract.
The reasoning is fairly straightforward. The law expects a certain amount of prudence on the part of one forming a contract. For example, it is a simple matter to ensure that you are not forming a contract with a child: You insist on seeing a birth certificate or other proof of age. Not so with mental capacity. If you formed a contract with the reasonable expectation that the other party had the capacity to contract, the court will support that reasonable expectation.
Mistakes concerning, or alterations in, the basic facts surrounding a contract may void that contract. For a mistake of fact to void a contract, essay on contracts, that mistake must demonstrate three qualities: the mistake must be mutual, the mistake must have a material effect on the agreement, and the risk of the mistake must not have been assumed by the one attempting to void the contract.
Dan and Ben negotiate a price based on the number of calves the cow is expected to produce over her lifespan. After the agreement is made, essay on contracts, it is discovered that the cow is sterile and incapable of producing offspring. Here, essay on contracts, the mistake is mutual: Neither Ben nor Dan had an accurate understanding. The impact is material: A cow capable of breeding is worth several times more than a one that is not.
And Ben did not agree to the risk. Two people contract for the rental of a hall for a gathering. Prior to the day of the gathering, the hall burns down, essay on contracts. Performance has become impossible and the contract is rescinded as a matter of law. To use a classic case from England: A royal coronation was scheduled and a parade route established.
Many people with homes along the route offered their houses for rent. These rentals were for just a single day—the day of the coronation. When the coronation was postponed, the original purpose for the rental contracts disappeared. The courts voided the contracts using a line of reasoning we have seen before: The renters did not contract to assume this risk.
In such a set of circumstances, essay on contracts, the court will often void a contract. The general rule is that an oral agreement is as much a contract as a written agreement.
However, essay on contracts, the Statute of Frauds, first enacted in England inrequires that certain agreements must be evidenced by writing in order to be enforceable. Every state in the United States has enacted some form of this statute.
While the coverage essay on contracts from jurisdiction to jurisdiction, common provisions include the following:. Essay on contracts one can piece together a paper trail of letters, e-mails, checks, and the like that demonstrate that an agreement was in place, this may fulfill the requirement of written evidence.
If one party to the contract does not live up to a promise, that party is said to have breached and will likely owe damages to the disappointed party. What the disappointed party often wants—but rarely receives—is specific performance: An order from the court that the breaching party must deliver on the promise.
Specific performance is usually reserved for situations where what is bargained for is unique; the classic example is real estate.
As each parcel of land is unique, a court will often order specific performance to transfer ownership of a contracted-for piece of real property. But in most cases the court will order only money damages, which is seen as a replacement for performance.
Just as Bob is about to begin work, Herb announces that he does not want a house on the lot and will not pay Bob to build one, essay on contracts. Clearly, an order of specific performance makes no essay on contracts Bob has little interest in building a home no one wants.
Essay on contracts Bob wants is the benefit of the bargain, essay on contracts.
How to Approach a Contract Law Fact Pattern: Introduction to Contracts [LEAP Preview]
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· A contract refers to a voluntary agreement between two or more parties that is lawfully enforceable as a legally binding agreement. There are various elements of a contract that must be met for any contract to be legally binding between the parties involved. These elements include; offer and acceptance, consideration, capacity and competency, mutual Essay on Contracts. Words6 Pages. Contracts A contract is formed between two or more parties. In order for a contract to be legally binding there must be offer and acceptance. This simple basis for a contract is not as clear cut as it first appears. In certain circumstances it is often necessary for the two parties to the contract to communicate via post or by other indirect means There are four elements that are needed to make a contract valid. The first; the offer made by one part must be accepted by another party. Second; consideration which means that each party must either give or receive something of value. Third, each party must have the capacity to understand the terms and conditions
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