This website uses cookies to ensure you have the best experience. Learn more

Business Contracts Essay

1143 words - 5 pages

American Intercontinental University
BUS 310-1101B-10
Instructor Dunn
Latonya Vereeen

In the following paper will discuss the four essential elements of a valid contract. Also included is the objective theory of a contract and how it applies to the scenario that was given. Furthermore, an explanation will be given why the court in the scenario held that there was not a valid agreement. In further discussion explains if advertisements are considered offers. Last but not least, an explanation will be given on how the scenario case differs from a reward situation in which a unilateral contract is formed upon completion of the requested act.

In order to know what a ...view middle of the document...

The next element of a contract is the acceptance. In this part of the contract both parties agree upon all terms of the contract and their intentions are made clear to each other (Financial Web, n.d). The acceptance part of the contract is the agreement that can be between two companies, a person and a company or even between two people (Maughan, 2011). M R Curd Limited (2004) stated “the acceptance must be of what the offer stated, if not this is considered as an encounter offer.”
The third element is the intention of legal consequences. The purpose of this element is to inform the other party entering in the agreement that the contract must intend to create legal relations and must understand that the agreement can be enforced by law (Small Business, 2010). Goodchild, Herring and Milosevic (n.d.) stated “a contract cannot be enforce unless the actions agreed upon are legal in the jurisdiction where the contract is made.” Also in this section is where the competent parties section which ensures that the parties entering the agreement are legally eligible to enter into the contractual agreement (Financial Web, n.d.). Financial Web (n.d.) states “This can consist of knowing if the parties are the legal age to agree to the conditions of the contract, or meeting the requirements in its jurisdiction for mental competence.”
The fourth element is the consideration (Financial Web, n.d.). In the consideration each party agrees to give something to the other party (Goodchild, Herring and Milosevic, n.d.). The consideration can be in the form of money for payment; refraining from doing something right; or anything of value (Small Business, 2010). However, the consideration of the contract cannot be something that was promised in the past (Ollek, n.d.). It must be a new promise or a new exchange for the offer to be made valid (Ollek, n.d.).
Now that we know the four elements of a valid contract lets discuss what the objective theory of a contract is. According to US Legal (2011) the objective theory of a contract is a principle states that the existence of a contract is determined by the legal significance of the external acts of a party to a purported agreement, and not by the actual intent of the parties. This basically says that the principle of the theory means the legal significance is based on what the...

Other Essays Like Business Contracts

Contracts and Acceptance Offer Essay

2105 words - 9 pages _____________________ . References Bitting, T. & Frey, M. (1988). Introduction to Contracts and Restitution for Paralegals. West Publishing Company. St. Paul, Minnesota Cheeseman, H. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed.). Pearson Education Glasner, K. (n.d.). Contract

Contracts Outline (for Law School

5096 words - 21 pages while performing this one contract 4. Reasonable price 5. Seller’s place of business 6. Reasonable time Walker v. Keith: rent not finalized; Courts said that if the parties do not fix the rent with reasonable certainty, it is not the business of courts to do so. The lessee had no option right. This is also a common law issue, and the courts do not have gap fillers for common law. Rego v. Decker: Uncertainty as to

Types of Contracts and Performance Based Acquistion

1573 words - 7 pages Types of Contracts and Performance Based Acquisition Dr. Victor Villarreal BUS 501 March 8, 2015 Types of Contracts and Performance-Based Acquisition A contract is a type of written agreement between the two or more entities that is abide by the law. The purpose of the contract is to fix the rights and the responsibilities of the parties according to the agreement. There are different types of contracts that vary with respect to the

Executive Summary of Contracts

1090 words - 5 pages Executive Summary on Contracts Charles P. M. Green American Intercontinental University Abstract There are four elements that make a contract valid. These elements played a role in the Pepsi lawsuit, and how Pepsi did win through the laws of binding contracts, and what really does constitute a binding contract. Also I will discuss the objective theory of contracts, and how it may have related to the Pepsi lawsuit. Did they ever enter into

Contracts Essay 2

688 words - 3 pages CONCORD LAW SCHOOL OF KAPLAN UNIVERSITY CONTRACTS ESSAY 2 Able operated a 10 acre parcel of land. Able grew soybeans on 5 acres of the parcel and the remaining 5 acres were vacant. Able decided to plant soybeans on the vacant 5 acres, but he realized he would need an additional water source for the new crop. He entered into a contract with Baker whereby Baker was to dig a well on Able’s property. The written agreement stipulated that Able

A Fair and Resonable Price and Government Contracts

895 words - 4 pages A Fair and Reasonable Price And Government Contracts Amy Berdine-Roberts Cost and Price Analysis Professor Rafi January 10, 2008 When you first think about fair and reasonable price, you think about the goods that you buy or the services that you use. When shopping for anything, you do not want to feel buyer’s remorse because you are unhappy with the product or service so research is the key. You would shop around to ensure that you are

Bill & Ben Reticulation Pty Ltd vs Port Cricket Club - Income to be regarded as taxable or capital nature??

318 words - 2 pages As a general rule, amounts received as compensation with the cancellation or variation of trade or other commercial contracts made in the course of carrying on business are in the nature of income. Referring to Heavy Minerals Pty Ltd V FCT (1996) , where compensation for loss of anticipated profits as a result of cancellation of a distribution contract was held to be income. The taxpayer was in the rutile mining business and entered a number of

Mg Case Study

921 words - 4 pages MG case study I. What was the business model for MG? What were they trying to do? MG is a traditional metal company. Last four years, it has evolved into a provider of risk management services. MGRW is one of its subsidiaries in “Energy Group” and is in charge of refining and marketing petroleum products in the U.S. MGRM committed to sell certain amounts of petrolun every month for as long as 10 years at fixed prices which were set in 1992

Hase 2 Individual Project

615 words - 3 pages look at implied contracts where the agreement of the parties is indicated by their conduct rather than the explicit agreement compared to the oral contracts that emanate from a business agreement, however this kind is proven to be more effective in the close-knit industries or local communities. Then we look at the Executory v. Executed as the Executory is not yet fully completed as one or more of the parties still has an obligation remaining as

Corporate Governance

1204 words - 5 pages Corporate Governance Metallgesellschaft Hedging Debacle Introduction Metallgesellschaft AG is sometimes referred to as MG which is a German conglomerate that does it business with a wide range of practices including excavation, technology, trade and other fiscal services (Klapper and Inessa 704). The organization was founded in 1881 by Sir Wilhelm Merton among others like Leo Ellinger and Sir Zacharias Hochschild. Initially, the

Business Law On Luxury Goods - Contract Void Or Valid?

864 words - 4 pages contract. In a simpler way, capacity is referred as legal ability to enter into a contract and the law generally states that everyone has the capacity to a contract except for certain circumstances which will be discussed in the following paragraph. Phing is 17 and underage, which makes her legally ‘incapable of capacity’ due to her minor status, and therefore any contracts made by Phing would be void ab initio except for certain exceptions, such as

Related Papers

Contracts Essay

601 words - 3 pages 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

Employee Contracts Essay

1153 words - 5 pages has to be “legal”. The “Essential element of an agreement in contract law whereby an agreement is legal and enforceable only if it complies with the law of the land and public policy. Any agreement entered into for an illegal purpose is not legally binding (Business Dictionary, 2013).” Employee contracts are governed by common law. Common Law and UCC are laws that pertain to the United States of America. The UCC was put in place to bring

Obligation And Contracts Essay

688 words - 3 pages Colegio de San Juan de Letran Intramuros, Manila College of Business Administration and Accountancy Accountancy Area First Semester, School Year 2007-2008 |I. |Course Code |: |LAW 1 | |II. |Course Title

Federal Contracts Sealed Bidding Essay

804 words - 4 pages I n order to truly become successful in the government contract arena a small business would want to be educated on the ins and outs of government contract bidding. The federal government encourages small businesses to participate in government contracts. Each year, the head of each federal agency may set aside the award of certain acquisitions exclusively to small business concerns. Those set- asides may either be whole or partial. Total or