In general terms, a contract can be said to be an agreement between two or more parties where the parties are known as parties to the contract. The agreement creates rights and obligations under the common law and under the contractual statutes applicable in the USA and its states. The obligations created through the agreement require a party to the contract to perform something or refrain from performing something ("Uniform Commercial Code", 2016). In cases where the contractual obligations are not fulfilled, legislative and judicial remedies are available to the party aggrieved or suffering a loss. Contracts have become indispensable in the business fraternity throughout the world. However, the validity of a contract has always been questioned in matters of dispute. Validity of a contract depends on a few essential features that have to be fulfilled by the contracting parties in order to make such a contract enforceable under the eyes of the prevailing law. The purpose of this assignment is to bring out the essential elements of a valid contract and the consequences of a breach of contractual terms along with an explanation of the remedies available to the aggrieved party.
The essential elements of a valid contract are as follows:
Offer is said to be a promise or a proposal that is made to a party to perform or refrain from performing something in exchange of something that has value. It is a definite promise to be bound by the terms of the contract that are proposed. The contractual obligations come into existence once the terms have been accepted by the other part to which the offer was made ("Principles of American Contract Law", 2016). Acceptance occurs when the offeree accepts the terms of the offer and such acceptance shall be unequivocal. Acceptance shall be communicated to the offeror by an act or a statement.
Consideration is the price that is paid by the offeror to the offeree against the performance of the stipulated promise. The consideration must be something of value to the offeree and not necessarily money.
Formation of an agreement requires an intention of the parties to create a legal relationship between them ("Contract Law", 2016). Presence of consideration is a proof that a legal relationship exists. It is a consideration for the sacrifice made by the offeree.
A person shall be legally competent to enter into a contract. In other words, the person shall not be a minor, of unsound mind (declared by a competent court) or intoxicated. A person is said to be a minor if such a person is below the age of 18 or 21 (depends on the state regulations and jurisdictions) ("Contract Law", 2016).
Mutuality of Obligation is a doctrine under which both the parties to a contract are required to perform their contractual obligations otherwise the court may hold such a contract to be without any contractual obligations for both the parties involved. Contractual obligations are closely related to consideration. Contracts not fulfilling this element are mostly invalidated by the courts.
Contracts may be written or oral and both are considered to be valid under the law. However, under the State of Frauds, certain types of contracts are required to be reduced to writing for them to be valid and enforceable under the law ("Writing Requirement - Elements of a Contract - Contracts", 2016).
When a party is unable to perform their contractual obligation, there is said to be a breach of contractual terms. The aggrieved party suffering a loss due to such a breach may sue the other party and claim damages. A few reliefs can be claimed under the prevailing legislative structure as follows:
Monetary Damage: Monetary damages may be paid to the aggrieved against the losses faced.
Compensation: Compensation can be paid by the breaching party to compensate the promise. This puts the parties back to a position where it will be assumed that the breach did not take place ("Contracts - Contracts", 2016).
Specific Relied: After considering the circumstances of the case, the court may order the breaching party to perform a portion of the contract as deemed fit by the court.
Punitive Damages & Nominal Damages: Punitive damages are additional monetary penalties imposed by the court. Nominal damages are damages that are paid where it is not possible to determine the quantum of damage caused ("Contract Law", 2016).
The sample agreement is an agreement for sale and purchase of a real estate property. The buyer of the property is Mr. John Smith and the seller is Mr. Mike Cooper. The contract contains the details of the property. Payment is to be made through an escrow account and the contract stipulates the details of the consideration and the mode of payment. The contract stipulates a period of sixty days regarding contingencies of closing. The main subject matter of contract revolves around the manner in which the transaction is to be executed.
Chapter 18: Contract Law. (2016). Businesslawbasics.com. Retrieved 8 June 2016, from https://www.businesslawbasics.com/chapter-18-contract-law
Contract Law. (2016). Hg.org. Retrieved 8 June 2016, from https://www.hg.org/contract-law.html
Contracts - Contracts. (2016). Contracts.uslegal.com. Retrieved 8 June 2016, from https://contracts.uslegal.com/
Principles Of American Contract Law. (2016). www3.uninsubria.it. Retrieved 8 June 2016, from https://www3.uninsubria.it/uninsubria/allegati/pagine/1438/Prof_Mootz.pdf
Uniform Commercial Code. (2016). LII / Legal Information Institute. Retrieved 8 June 2016, from https://www.law.cornell.edu/ucc
Writing Requirement - Elements of a Contract - Contracts. (2016). Contracts.uslegal.com. Retrieved 8 June 2016, from https://contracts.uslegal.com/elements-of-a-contract/writing-requirement/
MyAssignmenthelp.com is a reputed name in the domain of providing assignment writing services in Australia. Our wider range of services includes college assignment help, university assignment help as well as high school assignment help. Students from any background or at any level, can avail our assignment writing help for best results. Our assignment experts, writers and editors work as a team to provide students top-quality assignment help that can get them higher grades.
Answer: Introduction: This report will provide all information and details of different facts in relation to taxation and law. It will support in providing all details and facts related to the calculation of all deductible and taxable income. It will reveal and explain the principle of taxation and assured laws with tax avoidance and tax evasion. It will also provide details of the importance and purpose of taxation policy...Read More
Answers: Introduction: The issues raised in this case are regarding the liability to Ming which is raised by the advertisement. Did a contract is formed based on the advertisement with forty customers? Did a contractual obligation is established for other ten customers? Whether a valid contract can be formed based on the advertisement? Did the offer is revoked by putting the sign in the shop? The parties who have formed a valid contract are ...Read More
Answer: Introduction Partnership is a business, which is operated by two or more people, as co-owner and divide income. They act on behalf of the other in their business. However, partnership is a structure of business, which is not separated from the operators. Partnership structure are of two types, such as, general partnership and limited partnership. In the general partnership, two or more people enter into a business together and make a ...Read More
Answer: Introduction: The issue is to check that whether Craig is liable for the purchase of a car as decided between him and Peter. For a valid contract, some elements are prescribed under contract law that must be there in every valid contract. Offer is a basic factor of every contract, which needs to be accepted by the offeree. Before doing discussion on elements of a contract, another term of Contract Law is also necessary to discu...Read More
Answer: Introduction HE is one of the leading company’s in the world but has been faced by several internal struggles or challenges. Though out this study, different areas within the management and the employee company relationships will be addressed. The company business culture will also be identified and discussed into detail to help clearly identify the challenges. Finally, possible recommendations or advice to the CEO and the Union...Read More
Just share your requirement and get a customized solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Great service and helpful customer service. Definately deserve the world\'s number 1 help company. Nevertheless, work was done perfectly and could be re-do until satisfactory. High recommend.
???? I gave my assignment on MY ASSIGNMENT HELP site and they gave me proper format assignments with proper content and I got 90 marks in this assignment, therefore, I am giving the advice to give assignments on MY ASSIGNMENT HELP site because they a...
it was good experience , before that my trainer sold its not good but after that it was ok thanks
My assignment got an A. It was an easy read. I did made a few changes and add another page of my own writing. But other than that the assignment was delivered in a timely manner.