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
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parties have a contract the moment that Chou and Big Time Toymaker (BTT) entered the exclusive negotiation agreement. A contract is considered perfected the moment the parties reached an agreement which signifies their consent, the object of the contract and the consideration or price. It bears to stress that the first element to test whether a contract has been perfected is that there must be intention on the parties to be legally bound. The second element to test the perfection of a contract is when the
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key components that compose a legally binding contract are the agreement and consideration. The agreement involves a meeting of the minds where the parties to a contract agree upon the terms of the contract. For the contract to be valid, this agreement must include some form of consideration, meaning that the contracting parties must receive something of value from the contract such as money. In order to meet consideration’s requirements, a contract must fulfill three elements. First, there must
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negotiation agreement for a 90 day period. There were specific stipulations that a written agreement must be in affect and signed within this time frame. Both parties had reached an oral agreement before the 90 day expiration had occurred and also had contacted each other through an e mail repeating the terms of the 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 this all taking place
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Module 01 - Law of Contract Coverage of: • Law of Contract: Definition, Essentials • Types of Contracts • Offer – Definition & Essentials • Acceptance - Definition & Essentials • Consideration – Definition & Essentials, Exceptions • Capacity of Parties • Free Consent • Quasi Contract • Legality of Object • Performance of Contract – Termination of Contract – Remedies for Breach of Contract Case Studies 1 The Indian Contract Act, 1872 The Indian Contract Act consists
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did the parties have a contract? A simple explanation of a contract would be, an agreement which is enforced and recognized by a court of law. In the case of Big Time Toymaker (BTT) and Chou (inventor of a new strategy game, Strat), there are various different types of contracts. One of the contracts was an oral agreement, within which BTT made an exchange of $25, 000 for the exclusive rights for the negotiation period of 90 days. Melvin, S. (2011) states that ‘any agreement, whether it is written
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starting a new business. Contract Law: it can be stated as “the body of law that administrates oral and written agreements associated with exchange of goods, money and property.’’ A contract law includes certain other aspects such as the nature of contract, contracts limits, freedom of contract and ending period of contract. Contract law is an agreement between individuals and is upheld by law and penalties are enforced if the contract is void or tempered with once the agreement has been signed.
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INTRODUCTION 6 I. The element legal issues in business for a valid contract 7 1.1. The elements in formation of a Valid Contract 7 1.2. Types of Contract 12 1.3. Terms in contracts 17 II. The elements of a business contract in business situation 19 2.1. The elements of contract in the business case 19 2.2. The law on terms in the above two different contracts 20 2.3. The effect of different terms in the two contracts 22 CONCLUSION 24 REFERENT LISTS 25 APPENDIX 26 INTRODUCTION
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Their organization covers all aspects of this industry including developing, manufacturing, and distribution of board games and other toys. In this particular case scenario Big Time Toymaker was interested in a specific new strategy game called Strat invented by an individual named Chou (MELVIN, 2011). Big Time Toymaker paid Chou $25,000 for exclusive negotiation rights for a term of 90-days. Within the exclusive negotiation rights it stated that no distribution contract will exist until it’s
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1.1 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
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