A contract is understood as an agreement that legally binds two all more parties. It is a promise that assures one protection in the case there is breach of the agreed terms (Posner 831). When a party consents a deal it implies that an obligation has been created.
(2) An offer:
It refers to an offeror’s willingness to enter into an agreement for a particular reason. An offer can be termed as a conditional promise upon doing something.
(3) Valid acceptance
It refers to the situation when an offeree accepts to be bound by the conditions and terms of a contract.
This is the value or something guaranteed for the purpose of binding an agreement between the involved persons. The reason is to show a person’s commitment to the aagreement.
What elements are necessary for a contract?
The following are the elements of a contract:
a.) An agreement
b.) Happens between competent parties
c.) each must exhibit genuine assent
d.) The contract must be supported by consideration
e.) The subject matter must be lawful
What forms may consideration take (how can it be made)?
Consideration can be expressed in writing for future reference. It serves as a promise compensate another party for accomplishing something (Friedman 47). The parties should choose an agent who monitors them as they sign the agreement.
Explanation on whether it is a must to have a contract in writing and what makes a contract valid?
It is not a must for contracts to be in written form. Though, it is important such that when one party breaches the terms of an agreement, it can be easily enforceable in law.
Elaborate what the term statute fraud means?
It is an obligation that formal contracts are made in writings, signed by all parties and have a definite knowledge to serve as future reference.
Who is legible to enter into a contract, and who cannot?
Adults of 18 years and above are legible of entering into a contract.
Children are below 18 are not supposed to engage in any form of contract (Schwartz, and Scott 552).
Mentally incapacitated people have no capacity to make a valid agreement.
Drunkards cannot be relied upon to enter into a contract.
Define and explain an implied contract?
This is a contract reached at by deeds of all parties, though it is not in oral or written form. The contract is assumed to have taken place by the deeds of parties, and a party can file a lawsuit against the other in a law court for not honoring their agreement.
What are the differences between implied contract and express contract?
Terms of an express contract are specified by the involved parties. They can be in written form and oral form. On the other hand, an implied contract rely on the circumstances and parties’ conduct. Also, they are not formal nor specified in words.
Friedman, Lawrence M. Contract law in America: a social and economic case study. Quid Pro Books, 2011.
Posner, Eric A. “Economic analysis of contract law after three decades: Success or failure?.” The Yale Law Journal 112.4 (2003): 829-880.
Schwartz, Alan, and Robert E. Scott. “Contract theory and the limits of contract law.” Yale Law Journal (2003): 541-619.