...Contracts Chris C. Zimmer Grantham University Abstract: This paper discusses the four elements of a valid contract and identifies and defines each element thoroughly. Contracts A contract is a binding agreement between two are more parties that involves a promise or several promises that are enforceable in courts. There are four elements are required to exist for the formation of a contract. They are that the agreement that is a manifestation of the parties’ mutual assent, a bargained-for consideration or validation device must exist, the parties must be legally competent, and the legal purpose must be consistent with the law. Contracts may be written or oral agreements. In order for an agreement to exist, there must be a proposal and an acceptance amongst the parties involved. This initial step of a contract requires that one party signifies to another a willingness to do or in some cases abstain from doing something, this is considered an offer. When the party to whom the offer is made assents or agrees to the proposal, it is considered as acceptance. There are several types of agreements or contracts that are discussed in our text. The first of which is the bilateral contract. A bilateral contract is an agreement that contains mutual promises, wherein each party is a promisor and a promisee. This type of contract is commonly used in the purchase and sale of a vehicle. A unilateral contract is one in which a promise is exchanged for an act of a performance...
Words: 844 - Pages: 4
...Republic of the Philippines PROVINCE OF BUKIDNON Capitol Compound, Malaybalay City General Conditions of the Contract PEEDMO-BPH & PEEDMO-PHS (Val) 1. Definitions 1.1 In this Contract, the following terms shall be interrupted indicated: a) “The Contract “ means the agreement entered into between the PROCURING ENTITY and the Supplier, as recorded in the Contract Form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. b) “The Contract Price” means the price payable to the Supplier under the Contract for the full and proper performance of its contractual obligations. c) “The GOODS” means all of the supplies, equipment, machinery, spare parts, other materials and or ground support services which the Supplier is required to supply to the PROCURING ENTITY under the Contract. d) “The Services” means those services ancillary to the supply of the GOODS, such as transportation and insurance, and any other incidental services, such as installation, commissioning, provision of technical assistance, training, and other such obligations of the Supplier covered under the Contract. e) “GCC” means the General Conditions of Contract. f) “SCC” means the Special Conditions of Contract. g) “The PROCURING ENTITY” means the organization purchasing the GOODS, as named in the SCC. h) “The PROCURING ENTITY’S country” is the Philippines. ...
Words: 5216 - Pages: 21
...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...
Words: 705 - Pages: 3
...explaining the essential elements of a contract and the applicable remedies in the event of a breach What is required for a valid offer? How can one accept an offer? What is the concept of consideration and what form(s) can consideration take in creating a contract? What factors must be considered in assessing the legal sufficiency of an offer, acceptance, and consideration in determining whether a contract is enforceable? In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law? explaining the essential elements of a contract and the applicable remedies in the event of a breach What are the 4 requirements of a valid contract? 1. Agreement 2. Consideration 3. Contractual Capacity 4. Legality What are the 3 elements that are necessary for an offer to be effective? 1. The offeror must have a serious intention to become bound by the offer 2. The terms of the offer must be reasonably certain or definite, so that the parties and the court can ascertain the terms of the contract 3. The offer must be communicated to the offeree What is an offer? a promise or commitment to do or refrain from doing some specified action in the future. What are the 3 exceptions to the consideration requirement? 1. Promises that induce detrimental reliance, under the doctrine of promissory estoppel 2. Promises to pay debts that are barred by a statute of limitations 3. Promises to make charitable...
Words: 1505 - Pages: 7
...__________________State:________Zip:_______ Hereinafter referred to as Client. A usable copy of this contract follows this explanation. All the first part, above, is doing is stating that this contract is between (fill in your name) and the client. (Fill in his personal name, company name, address). The client may want to have his attorney see this contract. 1. Purpose of Agreement: Circumstances have lead Client to believe that he, or other parties, are being targeted by criminal forces of some kind and he hereby agrees to contract with Bodyguard to provide personal protection services for himself and/or other parties for the length of time specified in this agreement. NOTE: Purpose of agreement. This is a statement stating that your client needs your assistance, and you are negotiating this agreement. 2. Duration: This contract shall be for a period of____________________________ from the below date. Contract must be signed by both parties and will remain in force unless terminated under conditions listed in Paragraph 3. If this contract should be terminated, for any reason, before the expiration date payment client agrees to pay bodyguard a fee calculated at a per day minimum of $400 daily, NOTE: Duration, #2, how long will this contract last, and the next paragraph (#3) stipulates how it can be cancelled 3. Termination: This contract may be terminated under the following conditions: (a) Agreement may be terminated by Client at any time; (b)...
Words: 1529 - Pages: 7
...following through with their agreement? Is the contract irrelevant because it was not reduced to UCC Statute of Frauds? According to Section 2 of the UCC Statute of Frauds, Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing. In reference to the above paragraph, a contract for the purchase of 100 watches was drafted by Randy Rolek and sent to Wally of “Windy City Watches,” In which Wally signed making the contract complete. Wally states that he should not be held accountable, but UCC Statute of Frauds states specifically, “$500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker.” Considering that the contract signed was for the purchase of 100 watches at $25 per watch, this puts the total due at $2500, making the contract valid. In...
Words: 370 - Pages: 2
...1. Invitation to Treat v. Offer to the World at Large A contract may be defined as ‘a promise or set of promises which the law will enforce’ or as ‘an agreement giving rise to obligations which are enforced or recognized by law’ . An ‘offer’ is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the person making it as soon as it is accepted by the person to whom it is addressed . An offer may be addressed either to an individual or to a specified group of persons or to the world at large; and it may be made expressly (by words) or by conduct. A communication by which a party is invited to make an offer is commonly called an ‘invitation to treat’. It is distinguishable from an offer primarily on the ground that it is not made with the intention that it shall become binding as soon as the person to whom it is addressed simply communicates his assent to its terms. A statement is clearly not an offer if it expressly provides that the person who makes it is not to be bound merely by the other party’s notification of assent but only when he himself has signed the document in which the statement is contained . Apart from this type of case, the wording of the statement is not conclusive: it may be an invitation to treat although it contains the word “offer” ; while a statement may be an offer although it is expressed as an “acceptance” , or although it requests the person to whom it is addressed to make an “offer”...
Words: 1484 - Pages: 6
...Practice Susan Towers 421 April 21st 2014 Roseali Drawbaough Theory to Practice When entering into a contract, it is important to note the elements of what makes a contract a legal binding agreement between two parties. The Theory to practice case is between Mr. Chou and BBT. Mr. Chou agreed soul distributorship on a 90-day contract agreement in return that BBT paid a sum for Mr. Chou’s product. Agreement, mutual assent, consideration, and capacity legality made up the two parties entrance into the contract. As in the case of BBT and Mr. Chou all contracts have differences to how they are perceived, what makes them legal in oral and written form that can either be remedied or voided by various laws and regulations. Questions 1-6 1. At what point, if ever, did the parties have a contract? The parties had an agreement when all the elemental requirements were formed in the original agreement between price, distribution, payment and terms were agreed upon. Approvals of the terms are supported by Consideration, capacity, and performance. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts would weigh in favor of Chou because of the language and actions of intent to contract were reasonably certain. The offeror and offerre both had serious intentions to be legally bound by the terms of the contract. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in ...
Words: 898 - Pages: 4
...Basic Elements of Contract In order to form a valid contract, each agreement must fulfill some important elements which are stated in Section 10 (1) of Contract Act 1950, “All agreements are contract if they are made by the free consent of parties competent to contract, for a lawful object, and are not hereby expressly declared to be void.” This section emphasizes the legal contract, the willingness and the parties capable of contracting and consideration which are all part of the basic elements of a contract. The following are the basics elements of the contract, a) Offer b) Acceptance c) Consideration d) Ability to Contract e) Intention to Create Legal Relations f) Certainty g) Free and Genuine Consent 1.2 Types of Contract All types of contracts can be divided into two, which is in the form of bilateral and unilateral contracts. a) Bilateral contract It will happen when made between two or more parties where the parties have been identified and can be determined. b) Unilateral contract This contract may be made by one party to the public in any of the other unidentified. For example, such as advertisements in the newspapers addressed to the public. 1.3 Forms of Contract Contract may be made orally or in writing. Contracts made orally are contracts that are made through our words or actions of the parties involved. This type of contract is difficult to prove in the event of a default or breach of contract. However, this method...
Words: 9665 - Pages: 39
...After a review of the Offer and Acceptance video I opted to go with Option 3, creating a contract that clearly states in writing the implied terms of the contract verbally communicated in the contracts. A contract is not a replacement for trust; it is the basis for trust. “Contract administration starts with developing clear, concise performance based statements of work to the extent possible, and preparing a contract administration plan that cost effectively measures the contractor’s performance and provides documentation to pay accordingly.” (www.acquisition.gov/bestpractices, Jan. 09, 2012) “For a contract to be enforceable, the following four (4) basic requirements must be met: 1) Agreement- an agreement between the parties, that requires a offer; 2) Acceptance of the offer; 3) Consideration, the promise must be supported by a bargained-for consideration that is legally sufficient. Money, personal property, real property, provisions of services, and such qualify as consideration. 4) Contractual capacity, [t]he parties must have contractual capacity for the contract to be enforceable against them. Contracts cannot be enforced against parties who lacked contractual capacity when they entered into a contract. 5) Law object, [t]he object of the contract must be lawful. Most contracts have a lawful object. However, contracts that have an illegal object are void and will not be enforced.” (Business Law: Legal Environment, Online Commerce, Business...
Words: 795 - Pages: 4
...STANDARD FREEDOM COUNTY CONTRACT 3/97 ©Copyright 1997 Freedom County Bar Association, Inc. All Rights Reserved. (Any change in the text without authorization shall constitute copyright infringement under the Copyright Act of the United States.) THIS CONTRACT FORM HAS BEEN APPROVED BY THE FREEDOM COUNTY BAR ASSOCIATION AND THE FREEDOM COUNTY BOARD OF REALTORS. ATTORNEY APPROVAL: This Contract is contingent upon PURCHASER and SELLER obtaining approval of this Contract by their respective attorneys as to all matters contained herein. This contingency shall be deemed waived unless PURCHASER'S or SELLER'S attorney on behalf of their client notifies the other party or that party's attorney in writing by facsimile or certified mail of their disapproval of this Contract, no later than five (5) business days after this Contract has been signed by both SELLER and PURCHASER. If PURCHASER'S or SELLER'S attorney provides such notification, then this Contract shall be deemed cancelled, null and void, and all deposits or Downpayment shall be returned in full to PURCHASER. In the event the premises herein consist of a condominium unit or is part of a homeowners association/PUD the review period provided for herein shall be eight (8) business days. I T I S ESSENTI AL THAT Y OU CONSULT Y OUR ATTORNEY WI THI N THE REV I EW PERI OD. Contract of Sale WARNING: NO REPRESENTATION IS MADE THAT THIS FORM OF CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE COMPLIES WITH...
Words: 5691 - Pages: 23
...Awesome Wood to Germany This contract of Sale of Good made and effective this 24.12.2012, by and between Germany as buyer and Awesome Ltd as a seller. (CISG Article 1) Awesome Ltd desires to sell to Germany, and Germany desires to purchase directly from Awesome Ltd, certain personal property. Therefore, in consideration of the mutual promises herein contained, the parties hereto agree as follows: 1. Sale. Awesome Ltd agrees to sell, transfer and convey to Germany, and Germany agrees to purchase the following personal property: 1. 1500m3 of Finnish pinewood in form of logs. Awesome Ltd will not be liable of the goods after the delivery, if Germany decides to sell forward / transfers goods to a third party company. 2. Price. Buyer shall pay Seller for the Goods €510/m3. Germany will make payment of the full purchase price by 14 days before delivery of the Goods. Germany’s right of inspection as set forth in Section 4 below. In the event that the purchase price is not timely paid, in addition to its other remedies, Awesome Ltd may impose, and Buyer shall pay, a late payment charge equal to thirteen (13%) of the overdue balance amount each beginning week (weeks begin from Mondays). 3. Shipping. Germany shall purchase goods according to Incoterms FOB Awesome Ltd.’s location and be responsible for all expenses associated with shipping. The risk of loss from any casualty to the Goods, regardless of the cause, shall be upon Germany upon the delivery of the Goods to Germany’s...
Words: 1292 - Pages: 6
...CONTRACTS Stages in the life of a contract: 1. Preparation/Generation 2. Perfection/Birth 3. Consummation/Death Characteristics of Contracts: (ROMA) 1. Relativity (Art. 1311) 2. Obligatoriness & Consensuality (Art. 1315) 3. Mutuality (Art. 1308) 4. Autonomy (Art. 1306) Stipulation pour Autrui - stipulation in favor of a 3rd party. Requisites: 1. The stipulation must be part, not whole of the contract; 2. the contracting parties must have clearly and deliberately conferred a favor upon a 3rd person; 3. the 3rd person must have communicate his acceptance; 4. neither of the contracting parties bears the legal representation of the 3rd party. General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause. Except: Acceptance by letter or telegram which does not bind the offerror except from the time it came to his knowledge. Theories applied to perfection of contracts: 1. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made; 2. Expedition theory - the contract is perfected from the moment the offeree transmits the notification of acceptance to the offerror; 3. Reception theory - the contract is perfected from the moment that the notification of acceptance is in the hands of the offerror; 4. Cognition theory - the contract is perfected from the moment the acceptance comes to...
Words: 5188 - Pages: 21
...ANS: For managing contracts it is important to break down contract management in to three phases. 1. Planning, Solicitation and Bidding (Preward) 2. Negotiation and Signing (Award) 3. Implementation (Post ward) In contract management process these phases comprise six major activities for the seller. 1. Buyer Procurement Planning: The process of identifying which business needs can be best met by processing products or services outside the organization. Seller Presales Activity: The process of identifying prospective and current customers, determining customers needs and plans and evaluating the competitive environment. 2. Buyer Solicitation Planning: The Process of preparing the documents needs to support the solicitation. Seller Bid/No Bid Decision Making: The Process of evaluating the buyer’s solicitation, assessing the competitive environment and assessing the risks against the opportunities of a potential business deal, and then deciding whether to proceed. 3. Buyer Solicitation: The process through which a buyer request bids, quotes, tenders or proposals orally, in writing or electronically. Seller Bid or Proposal Preparation: The process of developing offers in response to a buyer’s solicitation or based on perceived buyer needs, for the purpose of persuading the buyer to enter in to a contract. 4. Buyer Source Selection: The process by which the buyer evaluates offers, selects a seller...
Words: 345 - Pages: 2
...A contract is an agreement between parties, with terms and conditions that describe the agreement, that constitutes a legal obligation. Contracts provide the means for individuals and businesses to sell and otherwise transfer property, services, and other rights. The four elements of a valid contract are agreement, consideration, contractual capacity, and lawful object, in order for a contract to be enforceable all four of these requirements must be met. An agreement is when someone makes an offer and the offeree accepts. A consideration is a commitment made between both sides to perform a contract, this is most common when money is exchanged for goods or services. Contractual capacity is the legal ability to enter into a contract (Cheeseman,2009). Lawful object is required for a contract to be enforceable (Cheeseman, 2009). The objective theory of contracts holds that the intent to enter into an express or Implied-in-fact contract is judged by the reasonable person standard (Cheeseman, 2006). In the case of PepsiCo vs. Leonard there is no contract on the basis of the objective theory. As the judge ruled "an objective reasonable person would not have considered the commercial an offer" (Leonard vs. PepsiCo). Objective theory of contracts makes a proposal stating that would, a reasonable person in the position...
Words: 587 - Pages: 3
