Contracts Essay example -- essays research papers

ContractsA contract is an agreement that is enforceable by law. Modern business could notexist without such contracts. virtually business transactions involve commitments tofurnish goods, services, or real piazza these commitments are usually in the constitute of contracts.Use of the contract in business affairs ensures, to some extent, the mental processof an agreement, for a ships company that breaks a contract whitethorn be sued in court for thedamages caused by the breach. Sometimes, however, a party that breaks a contract whitethorn be persuaded to repair an out-of-court settlement, thus saving the expense oflegal proceedings.A contract arises when an suggest to make a contract is accepted. An offercontains a promise (for example, "I will pay $1,000") and a request forsomething in return (a persons car). The sufferance consists of an assent bythe party to whom the offer is make, showing that the person agrees to the basisoffered. The offer may be terminated in a deem of flairs. For example, 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 mustiness give their assent. They must actin such a way that the other 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 in secret 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 unitary isheld to a contract. experimental conditionA contract results fro m 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 consideration. 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 bills intentional 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 roughly 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 soil isalways considered unique. Therefore, when a party has contracted to sell real estate of the realm but changes his or her mind, the court may grant specific performance andorder that the deed for the real estate be delivered to the agreed buyer. well-nigh contracts are formed with an implicit understanding that neither party bespeakperform unless the other has completed 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 foe party mustperform, although he or she may secure money damages to the extent that he orshe was damaged by neediness of complete performance.