The case presented is that of Sam Stevens who resides in an apartment. He has been working on an alarm system that makes barking sounds to scare off intruders, and has made a verbal agreement with a chain store to ship them 1,000 units. He had verbally told his landlord, Quinn, about his new invention and Quinn wished him luck. However, he recently received an eviction notice for the violation of his lease due to the fact that his new invention was too loud and interrupting the covenant of quiet of enjoyment of the neighbors and for conducting business from his apartment unit. Various elements must be present to prove that a valid contract exists between Sam and the chain store. The four elements to a contract are agreement, consideration, …show more content…
(Insert Citation p 305). Consideration refers to the attained good or service agreed upon by each party under a contract. Contractual Capacity is the legal ability to enter into a binding agreement. Some factors that affect contractual capacity are: age, mental health and agreements under alcohol intoxication. Last but not least is the legal object, which means that for a contract to be enforceable it must be of legal intent and comply with public policy. If all of these factors are present in a contract, we can conclude that a binding contractual agreement exists and it is enforceable by law. If the elements of a contract did exist between these parties, there could still be some possible reasons why a contract might not be valid based on facts not present in the scenario. For example, if Sam was a minor at the time he made the agreement with the chain store, the contract would not be valid because of contractual capacity. Per the law a contract by minors is voidable by the minor itself. Other reasons that would deem a contract invalid are lack of genuine assent, which means that the accepting party entered the agreement under fraudulent circumstances, duress, undue influence and/or misrepresentation. Moreover the validity of the contract could be hindered due to lack of proper form. This typically refers to
The four elements of 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 do not know Sam 's age or whether
In this case study a man (Sam Stevens) is living in an apartment where he invented a product. He has verbally promised to deliver this product to a store. He then receives an eviction notice from his landlord, for the product disrupting other tenants and for conducting a business out of the apartment. Then receives a notice from the store; asking for the product that he had promised to be delivered immediately.
A contract was also formed between both parties when Margaret accepted the offer. In order for a contract to be enforceable, both participants need to have the capacity to enter into a contract. The parties must not be minors, mentally incapable individuals and intoxicated at the time of forming the contract. Margaret and Frank were presumably mentally competent adults,
(4) the seller will be accountable to prove that any term or condition is individauly negotiated.
The location or distance involved. IF the contract prohibits you from working in the Western Hemisphere, that scope is too great, but the same county may be small enough to consider the agreement enforceable.
Specifically, the presence of these connecting factors makes it difficult for any party or court to identify a single factor that determines the applicable law. Second, there is a question as to which law should determine, among other things, the interpretation, validity, and discharge of the contractual obligation. And third, due to the number of different types of contracts that exist, including contracts for the sale of goods, employment contracts, and insurance contracts, an issue arises as to whether different types of contracts should be governed by a uniform law or whether different laws should govern each particular type of contract. Both contracting parties and courts must consider these issues in creating, interpreting, and enforcing international
In order for a contract to be formed, there are various requirements. These are offer, acceptance, consideration, and the intention to create legal relations. A contract may also be terminated.
A third element of a contract is consideration. Consideration is something paid, done, or not done to render a promise enforceable (CTU, 2013). If I promise to pay you $60 if you mow my lawn both sides have given consideration. I would have to pay you the $60 and you would have to mow my lawn. Whereas if I promise to give you $60 there is no consideration as you would not be giving up
Generally, to have a valid contract, there must be (1) offer; (2) acceptance; (3) consideration; (4) parties have capacity to execute contract; and (5) it is a legally enforceable contract. (Miller, 2013). Offer is an objective manifestation by the offeror to execute a contract which gives the power of acceptance to the offeree. (Miller, 2013). Acceptance is an objective manifestation by the offeree to accept the contract. (Carlill v. Carbolic Smoke Ball Co., 1892). Also, consideration exists by bargained-for-exchange between the offeror and offeree. (Labriola v. Pollard Group, Inc., 2004). Lastly, movable goods are governed by Uniform Commercial Code (U.C.C., 2003). U.C.C. has specific rules for auction contracts. An offer is accepted when
On October 4th, 2016 Homer calls a company known as Pest Patrol and speaks with Christine, a representative, he then states his issue and gets an offer of £400 for the fumigation services, which he accepts over the phone. At this point, Homer has accepted a unilateral contract, where only one party assumes an obligation under the contract . In this case, the party assuming an obligation is Pest Patrol and their duty is to provide the fumigation services in return for money. An example of this can be seen by the Great Northern Railway Co v Witham case, where it was held the claim is allowed because there was no obligation for the claimants to order materials, however the defendant was obliged to deliver as per his tender. On October 5th, 2016, Homer receives contracts from Pest Patrol stating the agreement of £400 pounds for the fumigation service as the conditions of the offer. After signing and sending the contracts to Pest Patrol on October 5th, 2016, Homer doesn 't hear back from the company for numerous days. On October 11th, 2016, Homer attempts to revoke his offer with Pest Patrol by sending a letter, criticising their speed and informing the company to rescind his acceptance. However, Homer had already accepted the offer through the postal rule which states, the acceptance takes effect once the mail has been
In addition, Plaintiffs have not alleged sufficient facts to sustain an anticipatory repudiation of a contract claim, and have waived any claim based on a constructive eviction. Plaintiffs also cannot maintain their breach of contract causes of action because they failed to perform their contractual obligations, waived any breach claims based on allegations occurring before Plaintiffs extended the lease term, and Defendants were not in breach for the allegations pertaining to August 2014. Therefore, Counts IV, V, VI, VII and VIII should be dismissed with
There are 5 fundamental elements of a contract that is the offer, acceptance, veritable aim to make lawful relations, thought, and limit. Section 2(h) of Contracts Act 1950 states that "a contract is an understanding enforceable by law". In this case, there are 2 elements said that is, offer and acceptance. Section 2(a) of Contracts Act 1950 states that "when one individual means his eagerness to do or to avoid doing anything, with a view to acquiring the consent of that other to such demonstration of restraint, he is said to make
What is actually considered a valid contract? The first issue we must look at in this contract dispute is to determine if there is even a valid contract. A valid contract has three basic elements an offer, an acceptance and consideration. If a contract meets your states requirements for a binding legal agreement, you are generally bound by that contract. The essential terms of a contract identify the parties to the contract, subject matter of the contract, contract price, and the time for performance of the contract. Intent to establish a contract must be definite and evident. Basically, it’s clear that you and the other person intended to enter a contract. If a contract appears to be binding and enforceable on its surface, that contract maybe
For a contract to be valid, all parties to a contract must have the capacity to enter a contract. Capacity is referred to as the legal ability of going through into a contract and having the law which usually makes an assumption that everyone has the capacity to contract except a specific categories of peoples. The general statute of contract is that any person has the capacity to make a contract but exceptions exist in relation to mental patients, drunkards, corporations and minors. A minor may enter into a contract. The other party to this agreement, however, takes a risk that the minor may not fulfil the contract where it is for non-essential goods or for money, i.e., the contract is voidable at the option of the minor. Capacity may also refer to the authority of a legal person, in particular a company, to enter into contracts. A company’s capacity to contract is determined by its Memorandum of Association and its Articles of Association. A company may, but is not required to, state its objects in its Memorandum of Association. If the objects are stated, the company’s power is limited by its objects. If the company enters into a contract which is outside its stated objects and if the other party has actual knowledge of the circumstances, the contract is invalid.
Formalities – if formalities are prescribed for the formation of the contract , they must be observed.