country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Question:

Describe an example of a contract that you or someone you know entered into (e.g., rental agreement, cell phone agreement, property purchase or lease [e.g., car, home, furniture, etc.], home or car repair, or student loan agreement). In your description, be sure to provide specific contractual details including parties and subject matter involved. 

 

Answer:

Overview  

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.

 

Essential Elements of Contract

The essential elements of a valid contract are as follows:

Offer and Acceptance

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

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.

Intention to Create Legal Relations

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.

Legal Capacity

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

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.

Writing Requirement

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).

Breach and Remedies

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). 

Example

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. 

 

References

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/

 

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2017). Essential Elements Of Contract. Retrieved from https://myassignmenthelp.com/free-samples/essential-elements-of-contract.

"Essential Elements Of Contract." My Assignment Help, 2017, https://myassignmenthelp.com/free-samples/essential-elements-of-contract.

My Assignment Help (2017) Essential Elements Of Contract [Online]. Available from: https://myassignmenthelp.com/free-samples/essential-elements-of-contract
[Accessed 20 February 2020].

My Assignment Help. 'Essential Elements Of Contract' (My Assignment Help, 2017) <https://myassignmenthelp.com/free-samples/essential-elements-of-contract> accessed 20 February 2020.

My Assignment Help. Essential Elements Of Contract [Internet]. My Assignment Help. 2017 [cited 20 February 2020]. Available from: https://myassignmenthelp.com/free-samples/essential-elements-of-contract.


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.

Latest Business Law Samples

BSL165 Foundations Of Business Law 6

Download : 0 | Pages : 7
  • Course Code: BSL165
  • University: Murdoch University
  • Country: Australia

Answer: Introduction  In this report through a case study the contract law is going to be discussed. The concept of agency as par the contract law is going to be the focus of this case. The role of agency in case of making a contract with the third party is going to be discussed in this case. The liabilities and duties of the agent under the contract law have been evaluated. The rights and obligation of the third party as well as the pri...

Read More arrow

LAWS3100 Corporations Law 2

Download : 0 | Pages : 6
  • Course Code: LAWS3100
  • University: The University Of Queensland
  • Country: Australia

Answers: 1. Issue There are two issues involved in this case. The primary issue is to determine whether Marlow can resign from Clear Vision Limited and incorporate a new company to conduct the block chain business. The secondary issue is to determine the changes in the advice if their constitution contained a clause identical to Section 194 of the Corporations Act 2001. Rules As a general rule, a director can resign from a company by givin...

Read More arrow

BACC11 Corporations Law And Degree Programs

Download : 0 | Pages : 4

Answer: Introduction Criniti's is one of the largest and most popular Italian diners in Australia. Fundamentally, this organization has been providing quality foods to their consumers (Criniti’s Southern Italian Cuisine, 2017). The company was established by Frank & Rima Criniti in the year 2003. In the year 2007, the company started providing delicious and quality Italian foods in Darling Harbour in Australia. After that, the...

Read More arrow

BUS2010 Business Law System

Download : 0 | Pages : 5

Answers: Answer to Question No 1 A contract is an agreement which in intended to be made enforceable by law between the parties and bind them with contractual obligations. The parties must agree to the terms of the contract before entering into the contract (Knapp, Crystal and Prince 2016). Charlie Martin did not understood and agreed to the terms of the contract as the terms that were explained to him prior to enter into the contract, were tot...

Read More arrow

LAW00720 Legal Studies Business Law Assignment

Download : 1 | Pages : 11

Answer: Issue The issue in the case is to check whether the AFS Grocery Wholesalers Co. Pty. Ltd. has any legal right to claim the payment worth $45000 for the delivery of goods to John’s Supermarket. If yes, then what right this is? Rules In the current scenario, where lives are busy, it is very general that people enter into a contract with the help of other. These other people are known as agent and the person to whose behalf they ...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,201,731

Orders

4.9/5

Overall Rating

5,061

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2109 Order Completed

99% Response Time

Emma Zhong

Ph.D in Project Management with Specialization in Project Communications Management

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

440 Order Completed

99% Response Time

Jack Arens

MBA in HRM

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

752 Order Completed

100% Response Time

Hugh Cleave

Masters in Human Resource Management (MMgt, HRM)

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2115 Order Completed

97% Response Time

Kimberley Chen

MPA in Accounting

Singapore, Singapore

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

The writer followed directions well. Gave great detail. Work was delivered within the given time.

flag

User Id: 239259 - 19 Feb 2020

Australia

student rating student rating student rating student rating student rating

Work was delivered within the time frame given. Work was just as I expected. Well written.

flag

User Id: 239259 - 19 Feb 2020

Australia

student rating student rating student rating student rating student rating

Great quality paper, very impressive! Very happy about the writer! .....................................................................................................................

flag

User Id: 363978 - 19 Feb 2020

Australia

student rating student rating student rating student rating student rating

great work! delivered on time, the questions are sloved in details and clearly explained

flag

User Id: 374436 - 19 Feb 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?