What Are The Four Elements Of A Contract

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Bus-206 – Milestone Two Paper The four elements to a contract are the agreement, the consideration, contractual capacity, and a legal object. The oral agreement between Sam and the chain store satisfies the agreement element of a contract definition because when the chain store offered to sell Sam 's invention at their stores, Sam accepted by agreeing to ship 1000 units in exchange. The second element of a contract, the consideration of each party, is satisfied because Sam and the chain store have something to give the other (1000 units of the invention in exchange for the exclusive sales of the product at their stores). The third element is contractual capacity, which may or may not be fulfilled since we don 't know Sam 's age or if during negotiations Sam was either intoxicated or suffered from a mental illness. However, the fourth element which is "legal object," may not be satisfied between Sam and the chain store because there was nothing in writing, it was an oral promise (that would make the contract invalid). However, if the chain store has written proof confirming Sam 's promise, for example advertisements, invoices that the store only prepares in the regular course of business after an oral promise for a product delivery has been made, a court may consider Sam 's oral promise legally binding. Then it would be considered a "Primary obligation" …show more content…

He would be “unjustly enriched” and therefore, having knowledge of this benefit, he would be obligated to ship the units. In addition, even if the chain store did not pay him ahead of time and if, as I mentioned before, the chain store started advertising Sam’s product before receiving the units, this may benefit Sam as well and would therefore also fall under the quasi-contract definition but only if Sam knew about

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