You are to produce a 4 paragraph analyzing a contract. In advance of the paper send, for review by the instructor, a copy of a contract used in everyday life, e.g., insurance, credit card, rental agreement, gym membership, etc. Send this by email. Be creative. It can be a blank contract. Several websites offer free form contracts. There are contracts in Blackboard under Contract Examples link. The copy of the contract must be turned in with the paper unless you are using one that is in Blackboard.
The document featured in this essay is a Contract covered under the Contract Law of the land. As is the norm in all contract / agreements, this contract, which is between a Credit Card issuing company (Capital One) situated in the Missouri State of USA, is also based on the universal terms, which are – An Offer; An Acceptance and A Consideration. Two latest features introduced in this Card Agreement are – (a) Transactions made by the card user using the Online Transaction Mode and (b) Offering a Credit Card depending on the creditworthiness of the applicant. Although, Credit Card statements are difficult to understand, especially from their legal point of view, the terms stated by Capital One in this agreement are comparatively easy and straightforward. Capital One has also given the users the option of changing the payment cycles, provided it is notified before the start of the payment cycle and is in conformity of the state laws. On similar lines, the company also offers a flexible Credit Limit (sometimes referred to as the Credit Line), which can always be changed at the request of the user, provided the user proves the eligibility to the changed Credit Limit by providing appropriate financial documents. In certain cases, the company also offers a Joint Credit Limit, where the applicant couple files a Joint Tax Return.
Promise to Pay
In Para 6 on Page 4 of the Agreement Document, it is stated that the user is liable to pay to the company individually and jointly all amounts which are due on the user’s Account. Capital One also clarifies that even if the user allows someone else to use the Card, it will be the cardholder who will be held responsible for all transactions made by that person. Your promise to pay us clause also apples to the user’s estate in case of his death. Under the Contract Law, this clause is implemented using the ‘Offer and Acceptance’ statute. However, Article VI, Section 23 of the Missouri Constitution states, “a corporation can't sue somebody when they don't pay their bills”, hence the clause inserted by Capital One in the agreement can be challenged.
In Para 8 on Page 4 of the Agreement Document, it is stated that the user is liable to pay to the company under the terms reflected in the ‘Billing Rights Summary’ part of the Statement and the ‘Truth in Lending Disclosures’. In case the user does not notify Capital One as provided under these disclosures, the company will assume that the information contained in the Statement is assumed by the user to be correct. However, if a disputed amount is credited to the user’s account by Capital One, the user will give the company all the rights which the company may use against that other person. This is with regard to Article I, section 8 and Rule 4-8.4(c) of the Missouri Constitution and the user cannot challenge the allegation of fraud levelled by the company.
Capital One also states, in Para 3 page 5 of the Agreement Document that it shall not ‘Warranty’ any goods or services purchased by the user while using the card. The company’s warranty is limited to the extent as stated in the ‘Billing Rights Summary’.
The Constitution of Missouri, under Article I, Section 28 prohibits only the taking of a private property for private use, hence, Capital One's claim of countering the request for damages is null and void under Rule 84.19.