Contracts Essay example -- essays research papers

ContractsA melt off is an agreement that is enforceable by law. Modern business could notexist without such pledges. Most business legal proceeding involve commitments tofurnish goods, services, or real property these commitments are usually in theform of contracts.Use of the contract in business affairs ensures, to or so extent, the performanceof an agreement, for a ships company that breaks a contract may be sued in court for thedamages caused by the breach. Sometimes, however, a party that breaks a contractmay be persuaded to make an out-of-court settlement, thus saving the expense oflegal proceedings.A contract arises when an offer to make a contract is accepted. An offercontains a promise (for example, "I will pay $1,000") and a request forsomething in return (a souls car). The acceptance consists of an assent bythe party to whom the offer is made, showing that the soulfulness agrees to the termsoffered. The offer may be terminated in a number of ways. For exampl e, the partymaking the offer may cancel it (a revocation), or the party to whom the offer ismade may reject it. When the party to whom the offer is made responds with adifferent offer, called a counteroffer, the original offer is terminated. Thenthe counteroffer may be accepted by the party making the original offer.REQUIREMENTS OF A VALID CONTRACTFor a contract to be valid, both parties must(prenominal) give their assent. They must actin such a way that the another(prenominal) people involved believe their intention is to makea contract. Thus a person who is clearly not sincere in saying that he or sheaccepts an offer usually is not held to a contract by the courts. On the otherhand, a person who secretly has no intention of making a contract but who actsin a manner that leads people to believe he or she had, may be held to acontract. Legally, it is the external appearance that determines whether matchless isheld to a contract.ConsiderationA contract results from a bargain. This implies that each party to the contractgives up something, or promises to, in exchange for something given up orpromised by the other party. This is called good will. In the example givenabove, the consideration on one side is the promise to pay $1,000, and on theother, the promise to deliver a car. With rare exceptions, a promise by oneparty, without some form of consideration being extended by the other pa... ... of money designed to compensate for losses stemmingfrom the breach). Damages are measured by what may reasonably be foreseen asfinancial losses unforeseeable losses may not be collected. If an award ofmoney is not compensatory because something about the promised performance wasunique, the party who breaks a contract may be ordered by the court to performas agreed. This is called specific performance. For example, real estate isalways considered unique. Therefore, when a party has contract to sell realestate but changes his or her mind, the court may grant specific per formance andorder that the deed for the real estate be delivered to the agreed buyer.Most contracts are formed with an implicit taking into custody that neither party needperform unless the other has bump offd his or her promised performance. Anexception to this understanding occurs when a party has performed most of his orher obligation and the part not performed is relatively immaterial. The doctrineof substantial performance provides that in such a case, the opposition party mustperform, although he or she may secure money damages to the extent that he orshe was damaged by lack of complete performance.