...Elements of a Contract BUS670 Legal Environment October 27, 2014 When talking in terms of a contract there are five elements that must exist in order for a contract to be enforceable. “The phrase enforceable by a court is significant because it means that a court can assess monetary damages against a party who does not comply with the terms of the agreement.” (Seaquist, 2012) The criteria that must be present in order to be enforceable are; offer, acceptance, consideration, capacity, and legality. The first element that must be in agreement to make a contract enforceable is offer. In the contracts there are two people who are mentioned which are the offeror and offeree. The offeror is the person who is making the offer and the offeree is the party who is accepting the offer. Offers in contracts have different language from a preliminary negotiations. The thing that set them apart is that the language is definite and certain in nature. A few years ago I had to write a contract for a young Airman who was interested in buying my car and could not afford to pay for it all at one time. I started off the contract saying, “I agree to sell you my car” this showed her that I was offering her something that was going to be enforceable. Prior to starting work at the Fabulous Hotel an offer was made to me by the hotel. The offer stated the pay, hours and location. The offer is where you do your negotiating for what you want to get out of the contract. “The...
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...|Elements of a Contract | | | |Apple’s Contract | | | |11/18/2012 | | | |Iisha Nelson | |[Type the company name] | |Elements of a Contract | |Apple’s Contract | | | |Iisha Nelson | |11/18/2012 ...
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...Elements of a Contract BUS 670 August 25, 2015 Elements of a Contract Introduction A contract is a legal agreement between two entities that creates obligations by both parties that are enforceable by law. As Verkerke (2015) notes, individuals are often ill-informed of the legality of most common dealings in their lives. With a common ignorance of legal matters, it is essential that contracts contain the required elements to be legally binding and protect both parties involved. Additionally, it is pertinent to understand the difference between contracts governed by common law and those governed by the Uniformed Commercial Code (UCC). Finally, prior to signing a non-compete agreement or asking someone to, it is important to understand the circumstances that make it enforceable as well as the diversity of enforcement standards as they vary from state to state. Five Elements Required for Enforcement Every contract contains promises that are enforceable, however only certain conditions are enforceable by a court if they meet the following five elements: an offer, an acceptance, consideration, capacity, and legality (Seaquist, 2012). The first element, the offer, occurs between two parties, the offeror (the one who makes the offer) and the offeree (the one who has the option to accept the offer) which grants the offeree the power of acceptance (Seaquist, 2012). Although some preliminary negotiations may take place before the final acceptance of the offer, they are...
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...Elements of a Contract Sandee Jones Ashford University Business Law BUS670 Mr. Michael Huang December 16, 2013 Elements of a Contract Our entire economy is based on the freedom of individuals and businesses alike to form contracts, and a legal system of laws that enforces each to freely enter into. Most folk are used to seeing a contract in written form, and so most assume it must be lengthy, and in writing to be enforceable. This is not 100 percent true. However, there are five elements of a contract that must exist for the agreement to be enforceable (Seaquist, 2012). Contracts have no particular form. There are no particular words or phrases that must be used by either party. But someone needs to make an offer, which is element number one of a contract. The three characteristics of an offer are: 1. The language of the offer is definite and certain. This means that words that mean you are serious and “for sure.” 2. The transaction looks like a contract and it passes the “objective test,” and 3. The offer has been communicated to the offeree. The second element is “Acceptance.” Acceptance can happen after a valid offer, but it is the only one that leads to the “contract formation.” This means that one party has made an offer and another person has accepted the offer. For example, if an offeror says, “I will sell you a car for $5,000” and the offeree says, “I’d love another dependable car for $5,000.” The two have agreed to the terms of the offer and...
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...Abstract Blum (2011) provide a relatively simple explanation of the complexities of a contract by describing it as an exchange relationship that is established orally or in written form that is made between two or more individuals, contains at least one promise, and is recognized as a legally binding agreement (Blum, 2011). The focus of this written assignment examines the elements that must exist for a contract agreement to be considered enforceable by law. The assignment will examine the following contractual elements including: (a) offers, (b) acceptance, (c) legal consideration, (d) capacity, and (e) legality of purpose. In addition, the assignment will identify the components that govern the parameters of common law and the Uniform Commercial Code (UCC). For the purpose of this study, a fictitious scenario (myself) has been hired and offered a two year contract as the head chef of the Fabulous Hotel Company. As a sample to illustrate contractual issues that individuals may encounter, the agreement contains a non-compete clause that will serve to provide a closer analysis of specific contractual obligations and restrictions. The findings of this assignment will conclude that the courts are not able to successfully arbitrate disputes without an essential contractual agreement to define the terms that make it enforceable by law. The Anatomy of Contracts Without agreements spelled out in contracts, the courts are unable to adjudicate promises between individuals. In today’s business...
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...ELEMENTS OF A CONTRACT AND ENFORCEABILITY UNDER COMMON LAW AND UNIVERSAL COMMERCIAL CODE (UCC) Student Name: Michael Shepard Course Name and Number: Business 670: Legal Environment of Business Instructor: Dr. Leah Westerman Submission Date: April 20, 2015 Abstract This article will define the five elements needed to form an enforceable contract under common law and the Uniform Commercial Code (UCC). It will describe which types of contracts come under common law and under UCC. It examines one hypothetical, non-competitive agreement between a Chef and an employer (namely, Fabulous Hotel) in terms of enforceability and whether common law or UCC need to be applied to the specific case. The contract in question requires Chef to not become employed at any other dining establishment in the same metropolitan area for a period of two years after separation of employment with Fabulous Hotel. The article shows under four possible conditions in which the contract may become unenforceable. It concludes with reinforcement of contractual elemental requirements and suggests more appropriate contract formation provisions in serving best interest of both parties under common law and UCC. Five Elements of a Contract The five elements needed to form a viable contract are: offer by one party to another or many, acceptance by the offered party, consideration (usually in the form of remunerative compensation for accepted offer) in exchange for accepted offer, legal capacity...
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...Elements of an Employment Contract Deidra Lynn McIntosh BUS 670 Leah Westerman April 22, 2013 In today’s economy, most people are so happy when they get a job they sometimes overlook the paperwork they’re signing and don’t actually read the fine print. You may think you’re signing a contract, but really you’re accepting a job with a specific title, job description, stipulations and salary. The economy is structured on the freedom to draw up a contract with a system of laws that can be enforced. Contracts that are freely entered into are not always read carefully by the signer. The signer may not be aware of the elements required to make the contract enforceable (Seaquist, G. and Coulter, K.). For example if the Fabulous Hotel hires you as head chef under a two year employment contract. If you don’t read the contract carefully then you will not know that in the small print it says “The below signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ”. Therefore, you can’t work for another hotel in the same metropolitan area for two years there are several items that makes this contract enforceable. The elements of a contract will include offer, acceptance, and legal consideration just to name a few. The offer expresses the willingness of both parties entering into a contract. Most of the time the offer is dated and will expired at the end of that date. Moreover, if the date is not there the...
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...Elements of a Contract BUS 670: Legal Environment February 06, 2012 In a legal element of a contract, there are necessary to form binding contracts that are usually described in the following. These are an offer, an acceptance in strict compliance with the term of the offer, and legal purpose or objective. The example that is going to be use would be the steps to valid and enforceable real estate contract. In an offer, it’s a written or verbal statement by any party to express there intent to enter into a contract under certain terms (Schecter). These can be negotiated, re-negotiated, or withdrawn at any time prior acceptance. Once the offer is accepted and the contract is signed then will be known as the considered party to the contract and you must perform as agreed on the contract that you signed. An example of an offer would come from the steps to valid and enforceable real estate contract so it would be the offeror in which a party who present an offer to another party (BiggerPockets). Then the offeree is the party that receives the offer from the other party so there the offer would be from the offeror making an offer prepares a written contract, signs it, and then sends it to the offeree (BiggerPockets). The offer may terminate upon either an acceptance of the offer, a counteroffer, the expiration of a time limit, the withdrawl of the offer before acceptance, the offeree's failure to accept...
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...Elements of a Contract Business 670 Legal Environment Instructor: January 21, 2013 Abstract This paper is a brief analysis of the elements of a contract using a hypothetical of an employment contract. Elements of a Contract The issue of whether or not a contract may be enforceable where an employee is hired under a two-year employment contract with Fabulous Hotel and the term is up with a clause in the original signed contract to prevent the employee being hired to the same position, a chef, within the same metropolitan area for two years after their employ with Fabulous Hotel. In order for a contract to exist end be enforceable, some elements of a contract must exist in order for a contract to be enforceable. It can be determined that in this hypothetical provided for this assignment that there was an offer from Fabulous Hotel and an acceptance of that offer to be an employee as head chef for a period of two years. This simply shows that Fabulous Hotel offered a job and that said job was accepted under the terms of the contract offered by Fabulous Hotel. The consideration of this contract is that of employment. When I come in to work as head chef for Fabulous Hotel, they are therefore legally bound to pay me for my services as an employee for the work performed. As for capacity, when entering into this contract all parties involved do not lack the mental capacity to enter...
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...Elements of a Contract Name ETH/321 Date Instructor Elements of a Contract It is often difficult to fully understand that status of a person’s mental capacity. There are times when mental faculties are easily identified as being non present, but other’s in such cases as early onset dementia or Alzheimer’s, that a person who is not overly familiar with the person with the mental defect, that they are unaware of any issues. In this instance, Jack was unaware of the fact that the widow was experiencing the early symptoms of Alzheimer’s and made an offer he knew wasn’t completely fair, but still had his offer accepted. Although Jack was unaware of her pre-existing condition, when her daughter came to get the china, was denied, and subsequently sent notice to him, Jack should return the china. Therefore, Jack should have no need for an attorney. There was not a valid contract when the china was purchase for $150.00. The reason that a valid contract was not created was because of the fact that the widow was experiencing early symptoms of Alzheimer’s disease. Regardless of the fact that Jack had no knowledge of this, she was not in the right state of mind to fully assess the exact terms of the contract; likely, her Alzheimer’s made her unaware of the true worth of the china, not her age, or the fact that Jack knew how much he could make off of the china if sold in his store or elsewhere. The daughter’s suit will likely be successful because of the fact that her mother was...
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...Elements of a Contract Week 3 Assignment Bus: 670 Legal Environment Micah Blount Prof. Jennifer Stephens February 17, 2014 Introduction The goals of a contract are to ascertain the concord that the parties have prepared and to allot their privileges and responsibilities in accordance with that contract. The legal courts should implement a legitimate contract as it is created, unless there are basis that affect its enforcement. It is the purpose of the decree to promote the development of contracts between capable parties for legal rationales. As a universal statute, contracts by able parties, justifiably prepared, are compelling and enforceable. The provisions to which they have settled force persons to a contract. The purpose of this paper is to determine whether the contract in question is legally bidding. Many people call contracts “agreements”; however, I prefer the term contract, because it can mean one or more agreements within the contract. In contract, word “agreement” sounds as though only one agreement was made. A contract is formed when two or more persons or “parties” (hereafter party) agree to do, or to refrain from doing, something; and each party has some sort of stake in the outcome. In other words, one party cannot provide all the benefits while the other party provides nothing. For a valid contract to be formed that is enforceable by a court, each of the following criteria must be present: offer, acceptance, consideration, capacity, and legality...
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...Essential Elements of a Contract A contract means a promise enforceable by law. Two or more parties are usually involved in a contract and can seek justice in the court if one party defaults by failing to execute their side of the bargain. Contracts make it possible for people to enter into agreements knowing that justice will prevail. Contracts are vital in everyday life and business since organizations and individuals now have the confidence to transact business with each other knowing that enough commitment that cannot just be broken has been made and one cannot just pull out without having the law to contend with. However, a contract must be binding before the law court can enforce it. Several elements make up the formation of a legal contract and these include: there must be negotiation, agreement made up of offer and acceptance, voluntary agreement, consideration to support both parties, capacity to contract, and legality. However, for the purpose of this study, offer, agreement and legal consideration will be discussed to determine the individual role of each and how all three combine to establish a contract. Offer Offer is the first step in any contract. An offer usually expresses the willingness to initiate a contract. Here, one party (the offeror) makes a proposal to the other party (the offeree). Without an offer, there is actually nothing for the other party to accept and so no contract can be formed. In other words, there must first be an offer...
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...Elements of a Contract ETH/321 July 27, 2015 Professor A Contract A contract is defined as an agreement that creates obligations that are enforceable by law. Elements of a contract include mutual assent, consideration, legality and capacity (Legal Information Institute, 2015). Jack has to decide whether to engage an attorney. What would you advise? In this particular case I would advise Jack not to involve an attorney. The elderly lady that he entered into an agreement with is showing signs of early Alzheimers. This in itself would cause concern in a judge’s eyes. A person can only enter into a contract if they have contractual capability which means that they must understand the terms associated with the contract (Business dictionary, 2015). If the elderly lady didn’t have the capacity to fully understand the contract due to her deteriorating condition then it is unlikely that a judge would rule in Jack’s favor. A judge is not able to create an agreement for both parties. This fact being stated, the parties involved have no true agreement surrounding the terms of the contract so it is likely that the contract would be voided. Was there a valid contract when Jack purchased the china for $150.00? Why or why not? Did Jack's superior knowledge prevent formation of a contract? How might the widow's age or possible medical condition affect contract formation? A valid contract did exist during the period of sale and exchange since both parties had come to an agreement on...
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...Four Essential Elements of a Contract Offer There must be a definite, clearly stated offer for something. It does not include estimates, requests for proposals, letters of intent or expressions of interests. At times an offer will lapse. This happens when the time for acceptance expires, the offer is withdrawn before it is accepted or there is a reasonable time after in the circumstances after the life of the offer. Acceptance Only want can be accepted should be offered. This means that the offer must be accepted exactly as offered without any changes. If new terms are presented this is called a counter offer. This can wither be accepted or rejected. Before there is an agreement there can be many offers and counter offers. It is the acceptance of the offer that brings the negotiations to an end by establishing terms and conditions of the contract. The acceptance can be given verbally, in writing, or inferred by action that clearly indicates acceptance. Intention of Legal Consequences A contract requires that all parties involved intend to enter a legally binding agreement. They must understand that the agreement can be enforced by law. The intention to create legal relations is presumed. So the contract doesn’t have to state that you understand the legal consequences that can follow. If the parties involved decide that not to be legally bound by the contract it must clearly be stated. Consideration In order for the contract to be binding it must be supported by valuable...
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...Essential Elements for Valid Contracts By: M.H.M.Rishardh MBA, BBA (Hons), FCMI (UK), MCIM (UK), Member of AMA (USA). MSLIM, MIM (SL) BCAS Qatar Learning Outcome: On successful completion of this topic you must be able to * Understand the essential elements of a valid contract in Business Context Contracts that meet all legal requirements are valid and enforceable, which means that either party can hold the other party responsible for his or her agreement. 1. Offer and Acceptance To have a valid contract, there must be a meeting of the minds (mutual assent), nominally evidenced by an offer and acceptance. An offer is made by an offeror and expresses that person's willingness to enter into a particular agreement. The offeree is the person to whom the offer is made. When the offer is accepted by the offeree, a contract is formed. Unless the offer specifies a particular period of time for acceptance, it is considered to be held open for acceptance for a reasonable time. A newspaper on online advertisement usually is not regarded as an offer but merely an invitation to negotiate. If an offer states a time for acceptance but fails to indicate "time is of the essence," the courts could allow acceptance after the period for acceptance expires. If “time is of the essence” is stated in the offer, acceptance must generally occur within the period specified or the offer is canceled automatically. If the offer fails to specify the form for acceptance (letter, telephone...
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