Contracts Essay example -- essays research papers

ContractsA shrivel is an agreement that is enforceable by law. Modern business could nonexist without such contracts. Most business transactions involve commitments tofurnish goods, services, or trustworthy property these commitments are usually in theform of contracts. using up of the contract in business affairs ensures, to some extent, the doingof an agreement, for a party that breaks a contract may be sued in court for the amends 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 declare oneself 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 acceptance consists of an concur bythe party to whom the offer is made, showing that the person agrees to the termsoffered. The offer may be terminated in a number of ways. For exa mple, the party make 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 give their assent. They must actin such a way that the other people involved believe their blueprint 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 one 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 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 silver 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 dischargeance 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 contracted to sell realestate 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.Most contracts are formed with an implicit understanding that neither party needperform 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 secure performance provides that in such a case, the opposite party mustperform, although he or she may secure money damages to the extent that he orshe was damaged by lack of complete performance.