...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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...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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...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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...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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...Employment contracts are entered usually before employment begins and offer protection for both employers and employees, although contracts usually favor the employer. Employment contracts often contain key advantages for the employer, such as establishing an employee's minimum employment length. If were to sign an agreement to not work for a competitor during the two year period while employed under a contract with a company or 2 years after employment within the same metropolitan area this is only enforceable if all elements within the contract are met. In order for a contract to be enforceable all elements must be met; the main two elements are concepts of offer and acceptance, but even in these circumstances it is hard to enforce a non-compete agreement. We will look into the elements of employment contract, the UCC, and when a non-compete agreement is unenforceable. Contract A Contract is a voluntarily agreement entered by two or more parties in order to create a legal obligation and bind the persons that are entering in contract. A contract is only considered to be valid if all elements are met within the contract. So, within a contract there are essential elements which include; offer, acceptance, legal consideration, capacity, and purpose. A contract may be written or oral; the nature of the contract depends on the mutual consent of both parties. Written contracts generally have a longer statute of limitations and are an overall safer contract to enter into because...
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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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...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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...of a valid contract between two parties. A valid contract can be verbal and/or written. The contract becomes valid when there has been a promise, an acceptance, and consideration relating to the terms and conditions of the agreement. A breach of contract can take place if one of the parties does not comply with the terms of the contract. If this happens, the non-breaching party may be awarded remedies to recover any losses or damages. “The Law provides certain relief for aggrieved parties that suffer losses as a result of another party’s breach of contract. These relief mechanisms are collectively referred to as remedies. For many contracts, the remedy at law will be money damages awarded by the court to the non-breaching party. This is simply a legal mechanism for compelling the breaching party to compensate the innocent party for losses related to the breach” (Melvin, 2011. p. 171). The scenario between Big Time Toymaker (BTT) and Chou is about the two parties coming into an agreement to distribute a new game called STRAT, invented by Chou. Chou did enter an agreement with BTT for a trial period of 90 days with exclusive negotiation rights. This agreement was confirmed with consideration of $25,000.00. Just before the 90 days had expired, the parties reached a verbal agreement during a meeting. However, there was never a formally written contract that was finalized by signatures. Before Chou could have a draft written up concerning the terms of the agreement, he received...
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...May 1984 (GPR/21 - 31S/247) I. INTRODUCTION 1. At the request of the United States delegation the Committee on Government Procurement established the Panel under Article VII:7 of the Agreement on Government Procurement, on 23 February 1983, with the following terms of reference: "To examine, in the light of the relevant provisions of this Agreement the matter referred to the Committee by the United States in GPR/Spec/18; to consult regularly with the parties to the dispute and give full opportunity for them to develop a mutually satisfactory solution; and to make a statement concerning the facts of the matter as they relate to application of the Agreement and make such findings as will assist the Committee in making recommendations or giving rulings on the matter." (GPR/M/7, paragraph 67). The composition of the Panel was as follows: Chairman: Members: Mr. K. Berger Mr. E. Contestabile Mr. S. Sivam 2. The Panel met on 27 April, 1 June, 13 July, 15 September, 5 and 31 October, 24, 29 and 30 November and 6 December 1983. 3. In the course of its work the Panel consulted with the delegations of the European Economic Community and the United States. Arguments and relevant information submitted by the parties, replies to questions put by the Panel as well as all relevant Committee documentation formed the basis for its examination of the matter. 4. During the proceedings the Panel provided the parties adequate opportunity to develop a mutually satisfactory...
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...Business Agreement Task 1 P1: Explain different types of business agreements and the importance of key elements required for the formation of a valid contract. Business Agreement Business Agreement is the mutual understanding or assent of two or more than two legally competent parties. It is done or agreed upon on the relative duties and rights regarding current or future performance. An agreement typicallydocumentsthe give-and-take of anegotiated settlementand a contract specifies the minimum acceptablestandardofperformance. Types of Business Agreement There are various types of business agreements depending upon the nature, type and operations / activities of the business. These types can be categorized into following categories based on the above stated criteria. * General Business Agreements * Business Employment Agreements * Leases * Sales Agreements The General Business agreements contain Franchise Agreement, agreement with different agencies for advertising, insurance agreements, agreement on not taking legal actions, Settlement Agreement, Stock Purchase Agreement, business partnership agreement, privatization agreement etc. The different types of Business Employment Agreement are Employment Agreement, Consultancy agreement, Sales Representative Agreement, Employment Separation Agreement, Reciprocal Nondisclosure Agreement etc. Leases are of different kinds like Real Property Lease, Equipment Lease etc, and same is the case with Sales agreements, it also have...
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...Week 5 Final Paper Betty Poppins Bus 311 Instructor Brandy Krectzburg 7/01/13 Business Contracts: Protocol, Laws & Ethicality There are various kinds of contracts which arise within our business world today; contracts are an essential component to business livelihood. Although a contract is an agreement, not all agreements are valid contractual obligations. In order for any contract to be an official and legally binding agreement, there are essential requirements which must first be fulfilled. Because contracts are vital to the organization and its success, it is important that the organization has an inclusive understanding of the inner workings of business contract and law and sustaining ethicality within these agreements; this will help ensure that each and every business transaction is a smooth and successful endeavor from beginning to end. What is a contract, and what makes it valid? According to Essentials of Business Law, by Susan Rogers (2012), a contract is described as being “a legally enforceable agreement between two or more people.” Therefore, a contract emerges from the voluntary consent of two or more people with mutual accordance to enter into this agreement. Contracts are helpful to business, as these agreements are binding to both parties involved. In order for a contract to be a valid and binding agreement there are five fundamental yet essential elements that must be present, and these are: 1. The Offer, 2. The Acceptance, 3. Consideration...
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...Hypothesis * Target group * Problem statement Chapter 2 Employee contracts & Guest contracts * Legal issues present * Authorities that check contracts and agreements Chapter 3 Plan of action * Implementation of the STEM Concept * Strategy to come to a solution * Suggested incorporated contract agreements Chapter 4 Conclusion Chapter 5 Recommendations Executive Summary The hotel industry is currently growing in Suriname, which makes that also that job opportunities are increasing. In Suriname there are various hotels with different classifications with different standards. It is very important for hoteliers, employees and guests that they adhere to these standards. One of the most important standards is that the hotel management must follow the agreements written in a contract towards the employees and also towards the guests. It is important for Hotels to incorporate the concept of Reasonable Care. Reasonable care is the degree of caution and concern the hotel in this case would use in similar circumstances. It is a standard used to determine a legal duty and whether such duty was fulfilled. Hospitality operations have a duty of reasonable care to protect guests. The hotel is not liable for acts that it could not reasonably foresee. A Contract is an agreement between two or more parties that is enforceable in court, which means that there must be an agreement and acceptance of both parties. An offer is a proposal to do or give something...
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...THE INDIAN CONTRACT ACT, 1872 The law relating to contract is governed by the Indian Contract Act, 1872. The Act came into force on the first day of September, 1872. It extends to the whole of India except the State of Jammu and Kashmir. The Act is by no means exhaustive on the law of contract. It does not deal with all the branches of the law of contract. Thus, contracts relating to partnership, sale of goods, negotiable instruments, insurance etc. are dealt with by separate Acts. What is contract? The term contract has been defined by various authors in the following manner: “A contract is an agreement creating and defining obligations between the parties”. —Salmond “A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others”. —Anson “Every agreement and promise enforceable at law is a contract”. —Sir Fredrick Pollock The Indian Contract Act has defined contract in Section 2(h) as “an agreement enforceable by law”. These definitions indicate that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. To be enforceable, an agreement must be coupled with an obligation. A contract therefore, is a combination of the two elements: (1) an agreement and (2) an obligation. Thus Contract = Agreement +enforcement at...
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...Contracts Due to the extensive use of Contracts for the Organization, it is imperative that Contracts Management is up to date and monitored closely. The Contracts Monitor will be responsible for the complete maintenance and monitoring Contracts, created by the Contracted Legal Team. All issues related to Contracts will be reported to the Board and addressed by the Contracts Monitor. Any further non-compliance will be reported to the Contracted Legal team for further review. The Contracts Monitor, will need to work closely with the Contracted Legal team to monitor and create the following: • Authoring and negotiation • Baseline management • Commitment management • Communication management • Contract visibility and awareness • Document management • Issue and change management • Service level agreement compliance • Transaction compliance (Wikipedia.org, 2010) Authoring and Negotiation: The Contracts Monitor and the Contracted Legal Team will formulate, author and negotiate the Contracts for all elements of the pilot program. The legal documents will vary with each contract created. Contracts will include agreements with the Corporations, Contractors and Students. Baseline: The Contracts Monitor will monitor the baseline management of the service level agreements, including but not limited to: Accounting temp contracts, IT contracts, Human Resource Contracts, and Facility Contracts. The baseline will determine milestones in the contract, and the...
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...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...
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