KEY ELEMENTS OF A valid contract Find an example of a written contract that you have entered into. It could be a purchase agreement for a home, car or furniture, a warranty agreement, or a contract for home repairs. Identify the features that make it a valid contract. A contract is a legally enforceable agreement between two or more persons involving mutual promises to do or not to do something. The law of contracts is the area where law and business most often meet and where the courts try to protect you in your business dealings by giving you legal weapons against those who fail to honor their agreements with you. Because we do business in so many ways, there are many kinds of contracts. The essential elements of a valid contract must have these elements: 1) an offer which is accepted and for which valid consideration is given; 2) An intention to create a legal relationship 3) certainty of terms. In the same manner, the offer 1) must be communicated 2) can be revoked at any time prior to acceptance 3) must be distinguished from an invitation to treat where a party communicates that it is prepared to enter negotiations with a view to forming a contract.
... about the contract formation and negligence of contract in businesses. LEARNING OBJECTIVES TASK 1 Understand the essential elements of a valid contract in a business context TASK ... for business. There are agreements and contract in every business in recent than before. Verbal agreements are usually no longer used by the businesses. Written agreement in ...
In the same manner, the acceptance must be communicated, must be of the offer made (otherwise it will be a counter-offer) and if posted, must occur on the date posted. It is also important that a contract is not unlawful or gratuitous. Another consideration is that something must be given in return for the promise given by the offeror and an example of this is money. (Essentials features of a valid contract).
Written contracts vary significantly and there are common elements that must be present such as name, address, telephone numbers, registration numbers, start and completion dates (Przyblewski, Fran).
TORey Nava Head Customer Assistance Department Standard Chartered Bank Mark Cabuso CCAC-PL Standard Chartered Bank 345-765830378 ACCOUNT NAME Michael Hewitt Account NumbersOutstanding BalanceDiscountTotal Payment Net Of Discount USD 74,344.0030%USD 52,041.00 First Payment DateJune 16, 2006 First Payment Amount26,000.00 Second Payment DateJuly 17, 2006 Second Payment Amt.26,000.00 I would like to request for approval for my Standard Chartered Credit Card Accounts with a total Outstanding Balance of USD 74,344.00. I have been a cardholder for 2 years now. In the past few months, I have encountered problems settling payment for my card due to unexpected expenses. And now that I will be receiving some amount, I would like to take this opportunity to settle my account with you.
I am fully aware that if approved to waiver, my accounts will be cancelled and I will no longer be approved for a new loan thereafter. Thank you. MICHAEL HEWITT Cardholders Name Date Signed Approved and Noted By: REY NAVA Head Customer Assistance Department Write a short contract to provide a service to someone. You may request monetary reimbursement or something else of equal value from the other party. As an example, you may write a contract with one of your children to provide a certain reward (such as a car or a vacation) if the child maintains an agreed upon grade point average at school. Make certain that your work satisfies the basic requirements of a contract.
This Contract is made and executed on this ____ day of July, 2006 at _______________ by and among: Michael Hewitt and sister Sarah Hewitt to pay the amount of USD $100 for every grade higher than 90% in the academic year beginning September 2006 ending June 2007. Michael will pay her sister upon presentation of the report card of Sarah. Every subject that reaches 90% and higher shall be considered one USD100. This is to encourage my sister Sarah to do well in her academic work and excel. The two undersigned have mutually agreed to this contract effective this school year. MICHAEL HEWITTSARAH HEWITT You invite a painter over to your home to discuss some painting that needs to be done.
In 1994 the UK had a Balance of Payments current account deficit. Explain the possible effects that this deficit might have upon the economy Discuss what, if anything the UK Government could have done to reduce or eliminate this current account deficit. The balance of payments is a record of one country's trade dealings with the rest of the world. Any transaction involving UK and foreign citizens ...
You discuss what needs to be painted, the desired color scheme, and the final price. Nothing is written down. You agree on terms and the painter then performs the work, for which you pay him. Have you entered into a contract? If so, what type There are both oral and written contracts. A tremendous amount of business is conducted by means of oral contracts, which though never reduced to writing, create legally binding obligations the courts will enforce. But some contracts must be in writing if they are to be enforceable.
In the same manner, not all written contracts are enforceable, either because they are illegal or against public policy or because the parties are not legally competent to make them. Yet, this is still a valid contract with the painter. Written contracts are preferred to oral ones because of the difficulty of establishing the terms of an oral contract; the problem of persuading a court when you sue on the oral contract that your version of the facts is the right one. There is also a need to have certain defenses. This means that there was a defect regarding the transaction or the parties involved so that no contract was created. (Slaughter, J).
Crucially important to an enforceable contract is what is known as consideration: whatever it is that underlies and induces the promise. A promise by itself does not constitute a contract and cannot be enforced against the person making the promise called the promisor.
To make the promise enforceable, something must be given up by the person to whom the promise is made, called the promisee. Something already given up by the promisee before the promise was made will not support the promise. REFERENCES Business Contract Management and More. Accessed 22 July 2006 http://contract4u.coldfury.com/elements-of-a-valid -contract.htm Essentials features of a valid contract. Accessed 23 July 2006 at: http://www.mrcurd.co.nz/accounting_info/HF070.htm Przyblewski, F. Contract Elements Contract Formation.
Contracts contract is an agreement that is enforceable by law. Modern business could not exist without such contracts. Most business transactions involve commitments to furnish goods, services, or real property; these commitments are usually in the form of contracts. Use of the contract in business affairs ensures, to some extent, the performance of an agreement, for a party that breaks a contract ...
Accessed 22 July 2006 at: http://www.seniormag.com/legal/contractelements.ht m Slaughter, J. Contracts: Getting Essential Elements Together is Key. Accessed 22 July 2006 at: http://www.frb-law.com/contract.htm.