...any debate on an implied contract you will need to start with the idea of an express contract. With the thought of an express contract there is going to be any binding agreement between two people or parties. They need to know, understand and intend when cross the threshold of an express contract. This kind of contract will provide both parties who are involved will promise to do a particular agreement. The legal elements of an express contract are 1. An offer by one party and acceptance by another 2. Consideration, in specific something of value contributed by each party; and 3. A mutuality of intent. By association, there are two kinds of implied contracts, which are; 1. Contracts implied in fact 2. Contracts implied at law. An implied-in-fact-contract is one that must be inferred from the conduct of the parties. For an example of an implied-in-fact-contract is, Hass Construction wants Jack’s Lumber Yard to send them 24 pallets of 2x4’s for the job they are working on. Jack’s Lumber Yard does this without asking the existing price. That would make Hass Construction in a contract with Jack’s Lumber Yard and the contract is to pay the existing price for the 24 pallets of 2x4’s (the items implied). Even though Jack’s Lumber Yard and Hass Construction are not go into an express contract they do have a contract that is implied-in-fact. The legal fundamentals of an implied-in- fact contract are the same as an express contract. When looking at an implied-at-law...
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...ALL CONTRACTS ARE AGREEMENTS BUT ALL AGREEMENTS ARE NOT CONTRACTS 1 – INTRODUCTION A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties. Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”. Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`. "An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore (a) Agreement Contractual Obligation (b) Enforceability by Law. For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because...
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...we say all contracts are agreements but not all agreements are contracts because an agreement may not be enforciable by law while a contract is beyond mere agreements SINCE A CONTRACT IS ENFORCIABLE BY LAW. this is because, in order for it to be termed "contract" it must have certain elements such as offer and acceptance, consideration, permissible subject matter, legal age and mental ability to enter into a contract and finally one must have an intention to form a contract. Capacity of the parties to enter into contractual agreement. Anyone can enter into a contract, except minors, certain felons and people of unsound mind. The contract must identify who the parties are; usually names are sufficient, but sometimes addresses or titles may be used. In sales agreements, for example, in addition to names, "seller" and "buyer" are sometimes used to further describe the parties. Consent. A valid contract also requires the parties' consent, which must be free, mutual and communicated to each other. Consent is not free when obtained through duress, menace, fraud, undue influence or mistake. Books have been written about the complexities of those factors. Obviously, a person who signs a contract because there's a gun pointed at his head hasn't consented to the agreement and can rescind it. All cases, of course, are not that clear-cut, and the law must applied to each individual case. Also, consent isn't mutual unless the parties agree on the same thing in the same sense. This is...
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...All contracts are agreement but all agreement are not contracts Answer; A contract is a legally binding agreement or relationship that exists between two or more parties to do or abstain from performing certain acts. A contract can also be defined as a legally binding exchange of promises between two or more parties that the law will enforce. For a contract to be formed an offer made must backed acceptance of which there must be consideration. Both parties involved must intend to create legal relation on a lawful matter which must be entered into freely and should be possible to perform. An agreement is a form of cross reference between different parties, which may be written, oral and lies upon the honor of the parties for its fulfillment rather than being in any way enforceable. All contracts are agreement because there must be mutual understanding between two parties for a contract to be formed. All parties should agree and adhere to the terms and conditions of an offer. The following cases illustrate ways in which all contracts are agreements; In the case of invitation to treat, where an invitation to treat is merely an invitation to make an offer. When a firm's offer is accepted it results into a contract provided other elements of contracts are accepted. Considering person A buying a radio on hire purchase from person B who deals with electronics and its appliances. Both parties must come to an agreement on payment of monthly installment within specified period...
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...Teachers, AFL-CIO he following questions are based on the labor agreement between Rutgers University and the Union of Union of Rutgers Administrators American Federation of Teachers, AFL-CIO. Rutgers University is considered to be the eighth oldest university in the United States. Rutgers, formally known as Queen’s College, prior to 1924, was an all-male school until 1918, when women were admitted to the university’s Douglass Campus, which was New Jersey College for Women. Today, Rutgers University, which has campus locations in Newark, New Brunswick, Camden and several others, consist of more than 58,000 students, 43,380 undergraduate students, 14,800 graduates students and 13,000 faculty and staffs. In 1970, Rutgers Council of American Association of University Professors (AAUP) Chapters was formed and throughout the years have formed separate collective bargaining units for employed graduate students, part time faculty, police personnel and educational opportunity fund counselors. In 2007, the American Associate of University Professor became affiliates of the American Federation of Teachers (AFT). (Rutgers History) 1. Give the name of the union and the employer covered by the agreement. The name of the Union of Rutgers Administrators-American Federation of Teachers, AFL-CIO and Rutgers, the State University of New Jersey 2. Effective dates of the agreement. The effective date of the agreement is from July 1, 2007 through June 30, 2011 3. Identify who is...
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...enter into this contract with ______________ known as director of Daily Packaging Ltd. on 17 October 2013 This agreement is based on the following provisions: 1. The Hogwarts supporting team with ______________director, as responsible for a payment, is buying 10 machines from Daily packaging Ltd. With ____________ director, as responsible for a delivery. 2. The payment is doing by two parts, with the last one after machines delivered, with deadline of delivery 17 January 2014 3. In case of late delivery or late payment, the late side should pay 100 (one hundred) euro extra for each next day after deadline. 4. In case of severe cancellation from any part a penalty which is needed to be payed to another partie goes to 1000 (one thousand) euro. 5. The contract longs for 10 years and means to be used ones and any other time both sides will be agreed on this statements again. Furthermore, the First Partie agrees: Me, _______________ taking liabilities for giving a payment for the 10 machines of Daily Packaging Ltd. To _____________ in a summ 2300 (two thousand three hundreds) euro during next tree month with deadline 17 January 2014. and the Second Party agrees: Me, ____________- taking all delivery costs and charges for delivery and liabilities for a machines warranty for a 6 months, starting after the date of machines delivery and any training course for the machine operators. Invalidity or unenforceability of one or more provisions of this agreement shall not affect...
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...understand the meaning of agreement and contract. According to section 2(a) "every promise on every set of promises forming the consideration for each other an agreement. It is fact an agreement is a proposal and its acceptance, by which two or more person or parties promises to do abstain from doing an act. But a contract according to section 2(h) of the Indian Contract Act, "An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore (a) Agreement Contractual Obligation (b) Enforceability by Law. For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because it does not imply any legal obligation. We can say that (a) All contracts are agreements, (b) But all agreements are not contracts. (A) All Contracts are Agreements For a Contract to be there an agreement is essential; without an agreement, there can be no contract. As the saying goes, "where there is smoke, there is fire; for without fire, there can be no smoke". It could will be said, "where there is contract, there is agreement without an agreement there can be no contract". Just as a fire gives birth to smoke, in the same way, an agreement gives birth to a contract. Another essential element of a contract is the legal obligation for the parties to the contract, there are many agreements that do not entail any legal obligations. As such, these agreements cannot be called contracts. For Example: ...
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...Essentials of a valid contract. A contract is an agreement that can be enforceable by law. An agreement is an offer and its acceptance. An agreement which can be enforceable by law must have some essential elements. According to the constitution,All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. A contract must have the following elements. 1. Intention to create legal relationship. 2. Lawful object 3. Agreement not expressly declared void 4. Proper offer and it s acceptance 5. Free Consent 6. Capacity of parties to contract 7. Certainty of meaning. 8. Possibility of performance. 9. Lawful consideration 10. Legal formalities Intention to create legal relationship: The parties entering into a contract must have an intention to create a legal relationship. If there is no intention to create a legal relationship, that agreement cannot be treated as a valid contract. Generally there is no intention to create a legal relationship in social and domestic agreements. Invitation for lunch does not create a legal relationship. Certain agreements and obligation between father and daughter, mother and son and husband and wife does not create a legal relationship. An agreement wherein it is clearly mentioned that "This agreement is not intended to create formal or legal agreement and shall not...
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...distributing Strat and entered into an agreement with Chou, offering him $25,000 in exchange for exclusive negotiation rights for a 90-day period. This agreement stipulated that no distribution contract existed unless it was in writing. On day 87 of the agreement, the parties held a negotiation meeting and came to an oral agreement on the terms of the distribution agreement. Chou offered to draft the written distribution agreement and send to BTT. Before Chou could draft the contract, BTT’s manager sent Chou an e-mail with the subject line “Strat Deal” that outlined the key terms of the distribution agreement, including price, time frames, and responsibilities of both parties and their acceptance of the agreement. Chou, believing that this e-mail was the final written agreement, let one-month pass before BTT sent a fax requesting he fax over the draft distribution agreement contract. Chou immediately faxed the draft contract to BTT; however several months passed without a response from BTT. After a change in management at BTT, Chou was advised that BTT was not interested in distributing his game. This paper will review the case scenario and highlight why Chou has a case against BTT for breach of contract by answering the following questions posted within this case scenario and course syllabus. 1. At what point, if ever, did the parties have a contract? To determine at what point, if ever, Big Time Toymaker (BTT) and Chou ever had a contract we must first look to see if the parties...
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...Mailed on 23/12/13 BRIEF DISCUSSION ON CONTRACT ACT- 1872 According to Section 2 (h) of the Indian Contact Act, 1872, "A contract is an agreement enforceable by law”. A contract therefore, is an agreement the object of which is to create a legal obligation i.e., a duty enforceable by law. From the above definition, we find that a contract essentially consists of two elements: (1) An agreement and (2) Legal obligation i.e., a duty enforceable by law. As per section 2 (e) "Every promise and every set of promises, forming the consideration for each other, is an agreement." Thus it is clear from this definition that a 'promise' is an agreement. Section 2 (b) states that "When the person to whom the proposal is made signifies his assent thereto the proposal is said to be accepted. A proposal, when accepted, becomes a promise." An agreement, therefore, comes into existence only when one party makes a proposal or offers to the other party and that other party signifies his assent (i.e., gives his acceptance) thereto. In short, an agreement is the sum total of 'offer' and 'acceptance'. Example, A promises B to sell his horse for Rs. 10,000/-. The Law of Contract deals with such promises which create legal obligations. This excludes those promises made in common life which may be morally binding but creates no legal binding. Promises which do not give rise to legal obligations are not contracts. For example, if A promises B to attend the dinner and fails to attend then...
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...The law of contract is the foundation upon which the superstructure of modern business is built. It is common knowledge that in business transactions quite often promises are made at one time and the performance follows later. Explaining the object of the law Sir William Anson observes:”the law of contract is intended to ensure that what a man has been promised to him shall be performed” DEFINITIONS • A contract is an agreement made between two or more parties which the law will enforce • Pollock: “Every agreement and promise enforceable at law is a contract.” • Salmond: “A contract is an agreement creating and defining obligations between the parties.” AGREEMENT • An agreement is defined as “every promise and every set of promises, forming consideration for each other.” • A proposal when accepted becomes a promise. Agreement = Offer + Acceptance INDIAN CONTRACT ACT 1872 The law of contract in India is contained in the Indian contract act, 1872. According to section 2(h) of Indian contract act: an agreement enforceable by law is a contract” ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. OFFER AND ACCEPTANCE: When one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence he is said to make a proposal. The first step towards creating a contract is that one person shall signify or make a proposal...
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...Different kinds of Legal Contracts Teneisha Bonner BUSN150-1303A-03/Professor Smith August 11th, 2013 Abstract One of the main attributes of an advanced community is the legal obligation contract, which permits individuals to make promises with one another knowing that they have legal options in the circumstance of a violation of the deal. Contract regulation in the United States is based on common law and it sometimes varies by other states and even with federal circuits. In this paper, different legal contracts will be discussed. Different Kinds of Legal Contracts A contract can be either an express agreement or an implied agreement. An express contract is one in which the words are being pronounced verbally, either orally or in writing. An implied contract is one in which some of the words are not being pronounced in terms. An implied contract can either be understood in fact or understood in regulations. An agreement which is mentioned in fact is one in which the situations imply that both individuals have made a deal even though they both have not done so expressly. For instance, when an individual goes to the doctor for his/her yearly physical, he/she always comply that they will pay an affordable price for the labor. If he/she does not want to pay for the service after the physical, then he/she has broken the contract that has been implied in fact. When an express contract is being implied, both parties have to decide whether if the terms are being...
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...Theory to Practice A contract is an agreement a court of law will recognize. An agreement may result in a binding contract whether it is an oral or written agreement between parties (Melvin, 2011, p. 126). Contracts are put in place to protect both parties on either end of the agreement. A big time Toymaker (BTT) was interested in a new game invented by Chou. BTT entered into an agreement with Chou for exclusive rights to his inventory for a 90-day period at the cost of $25,000 (Melvin, 2011, p. 155). This paper will discuss some pros and cons of a contract, if and when a contract should apply to a situation, and some remedies for a breach of contract. Contract BTT and Chou made an exclusive negotiation agreement for a 90-day period. This agreement had stipulations that a contract had to be in writing within this period. Before the expiration of this period, the parties reached an oral agreement in a meeting followed by an e-mail from BTT to Chou repeating their oral agreement on paper. This electronic document reiterated the key terms of what was agreed upon in the meeting between the parties (Melvin, 2011, p. 155). With areas agreed upon, the parties should be considered under contract. Positive and Negative Facts of Agreement There are several areas in this simulation that show positive and negative facts for Chou in terms of the intent of contract. The facts that weigh in favor of Chou: * Meeting that was concluded with an oral agreement * Follow-up e-mail from...
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...CONTRACT NOTES NATURE OF A CONTRACT The very basic definition of a contract can be: A contract is a written or spoken agreement intended to be enforceable by law. It consists of 2 main parts: 1) Agreement 2) Its enforceability by Law 1) Agreement: Agreement = offer + acceptance In other words it is an accepted proposal 2) Enforceability by Law: An agreement to become a contract, it must give rise to a legal obligation or duty. An agreement in order to be a contract must give rise to a legal obligation and not a social obligation. Therefore only those agreements, which are enforceable in a court of law, are contracts. For an agreement to become a contract it should have the following characteristics: ➢ There must be 2 parties in the agreement. The offer must be definite and the acceptance of the offer must be absolute and unconditional. ➢ There must be an intention to create a legal relationship and not a domestic or social. ➢ The agreement is legally enforceable only when both parties give something and get something in return. This is known as “consideration”. It may not be only in cash or kind. It may be an act or abstinence or a promise to do or not to do something. ➢ The parties must be competent to enter into a valid contract. For eg. they should be sane, having sound maturity and should not have been disqualified from any law to which he is subject. ➢ Free consent. There...
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...MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPOR INDIVIDUAL ASSIGNMENT Identify the essential elements required for there to be a valid contract Course : Diploma in Business Administration (International Business-DBID2 1501A) Module : Introduction to Business Law Name : FIN : Lecture : M. Lukshumayeh Due date: 18th June 2015 Table of Contents: 0 Introduction.......................................................................................1 1.1 what is a contract ？...................................................................1 1.2 The difference between an agreement and a contract ................1 1.3 The elements of a valid contract..........................................2 2.1 Offer...................................................................................................2 2.1.1 The definition of an offer .......................................................2 2.1.2 Two types of offer.................................................................2 2.1.3 Rules relating to offer ..........................................................3 2.1.4 An offer distinguished from an "invitation to treat".............3 2.2 Acceptance.......................................................................................3 2.2.1 The concept of acceptance ...................................................3 2.2.2 Rules relating to the acceptance...
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