The nature of contracts is to enforce promises made by any given parties to an agreement but not all promises made are enforceable. There are fundamentals that make a promise or a contract enforceable. Some of these elements are, an acceptance, offer, the capacity to contract, must be legal, and consideration Carmichael, R. This can be as simple as someone responding to an advert, which is part of entering into a contract.
The nature of contracts is to enforce promises made by any given parties to an agreement but not all promises made are enforceable. There are fundamentals that make a promise or a contract enforceable.
Some of these elements are, an acceptance, offer, the capacity to contract, must be legal, and consideration Carmichael, R. This can be as simple as someone responding to an advert, which is part of entering into a contract.
If I advertise to sell my business and one offers to buy it, the buyer anticipates and has the expectation of getting the business after he or she meets the specified requirements. The seller will only give access to the business after receiving compensation and will transfer ownership after the buyer has fulfilled all the requirements.
If the terms of agreement are vague or not legal then the contract is not binding. This also applies to situations where there is provision of services. For example, if a person hires a painter to paint his or her house then the painter expects to receive compensation after the work is completed and is satisfactory to the client.
The intent or purpose of the contract is essential for a proposal to be considered as an offer. This is a clear indication to both parties that the contract they are entering is solemn that is if the parties agree to enter into a contract Stone, In a given contract once the offer has been made, all parties that are part of the contract must accept the terms of agreement.
Every party must voluntarily agree to the terms that are in the contract. After the offer is made and has been accepted by all the parties there must be a consideration.
Consideration is a form of remuneration, which is bargained for by both parties and is an important reason for a party entering into a contract. It must be of value to both parties and is a form of exchange for the performance or promise of performance by the other party Carmichael, R.
The objective of this paper is to have an overview on how the law of contract applies to various given situations as it is an important aspect of business law Question 1: Contract Law Introduction In contract law, a given promise is important to a binding legal agreement and it substitutes or represents a consideration since this is the inducement to enter into a promise.
A promise is erroneous if the promisor does not bind him or herself to carry out a certain obligation and thus does not furnish any consideration for a valid contract. However in given circumstances there are promises that are implied in fact which is an indirect promise that can be inferred from acts or expressions of the promisor.
In the occurrence that there is failure to fulfill a promise in a contract then that is considered to be a breach of contract in which the other party may sue for either damages or performance Stone, Background to the story Frank made a promise to take his friends for a treat on his birthday.
Frank could not make it because he was working late. However, his friends still went for the treat and they are now asking Frank to cater for the expenses. In the case of Frank, the agreement between him and his friends is not legally binding since it does not entail the ingredients that are vital in forming a contract.
These ingredients are; an offer has to be made, an acceptance, legality, consideration and the capacity to contract. The objective of this paper is to show that Frank is not liable to pay for the expenses his friends incurred and that the promise made is not contractual.
Browning versus Johnson Washington In the case of Browning versus Johnson, the facts explain the importance of mutual agreement between two parties and the need for consideration but that it is when that given circumstance allows for a given consideration Blum, Like in this given case where Frank made a promise to his friends but was unable to fulfill his promise because he had to work late.
His friends want Frank to make good his word and pay for the evenings expenses. According to the facts as per the Browning versus Johnson case where Dr.
Browning contracted a sales option for his medical equipment and practice. However, he became a signatory to second contract cancelling the sale contract whereby browning had promised to pay forty thousand dollars, which was to be released after his requirement of making sale his practice and medical equipment Blum, After some duration, Browning ensued a lawsuit for a proclamation judgment and restitution.
Browning affirmed that the unique contract for the practice sale was not valid and that therefore the ensuing annulment contract was invalid for not having consideration.
The court trial was able to establish that the sales contract was not valid for not having enough support and for inconclusiveness in view of the enforcement terms. However, the trial court found that the annulment contract was supported by adequate consideration thus sufficient proof for its validity.
After wards, Browning appealed affirming that the annulment contract was invalid because of the joint mistake concerning the legitimacy of the first contract Blum, The essay section is the most important part of any application, see the types of essays successful applicants have used to apply to business school.
Example Offer and Acceptance Essay With reference to the legal rules relating to offer and acceptance of a contract, advise the club whether it can claim the joining fee from Mary Published: Thu, 21 Dec Example Offer and Acceptance Essay With reference to the legal rules relating to offer and acceptance of a contract, advise the club whether it can claim the joining fee from Mary Published: Thu, 21 Dec According to the textbook, The Legal Environment of Business, tort law provides “remedies for the invasion of various protected interests.” (Cross & Miller, ) In this essay about tort law, I will talk about a tort case that has personally impacted me.
The essay section is the most important part of any application, see the types of essays successful applicants have used to apply to business school. Business Law Essay. However, there is an exception to that because the contract he entered could be a contract for necessaries.
An example of exceptions to the general rule is the contracts for necessaries. In Section 69 of Contracts Act , if a person, incapable of entering into a contract, or anyone whom he is legally bound to support.