Introduction A contract is an exchange of promises or the exchange of a promise for an item or act in return, which is enforceable by law (Kubasek et al, 2014). There are many different types of contracts such as express, implied, void, voidable, and quasi. It is important for contracts to be enforced in order to foster trust in the market place. Although, there is a substantial monetary reason for the Scuppernong grape product manufacturer to end its relationship with Don Willetts, Don’s request for continued relationship due to good faith and fair dealing and an implied contract must be honored. Implied Contract An implied contract is a mutual agreement or promise that has not been expressed in words, and in which both parties show …show more content…
Specifically the fifth requirement of competent parties is broken down to mean that competent parties are legally and mentally capable of entering into agreements and those parties such as minors and the mentally ill have only a limited capacity to contract (Cengage.com, n.d.). If acting out of this facet alone there would be no question as to if the contract were enforceable by law. However, the motives of Don when obtaining the contract from the 17-year-old son are not stated in our study, and are virtually irrelevant. Although, it would be easy to jump to the conclusion that Don was trying to find a legal loophole or deceive the Scuppernong manufacturer, even if this contract was void, voidable or otherwise not legal, one could only point back to the fact that there was an implied contract with Don in the first place. Proverbs 25:8 states “what you have seen with your eyes do not bring hastily to …show more content…
The assumption is that Don would seek compensation for damages incurred for the termination of said business. Sometimes referred to as promissory estoppel, Don may request that there is compensation due to the denying the existence of a contract for lack of consideration and one party, which has given something in exchange for another’s performance (Jimenez, n.d.). We have established that there is a valid contract under the assumption of applied contract; therefore, we must point back the definition of a contract and that it includes the exchange of promises. The Scuppernong grape product manufacture promised to provide the product and in turn Don invested in advertising, which benefited the company. Through either litigation or arbitration Don may attempt to recoup damages for loss of revenue due to the diminished ability to sale the product and cost of
When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are.
Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.
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
The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.
After my first conversation with the grape producer I decided that purchasing his company’s product would be to my business’s benefit. The partnership began with my company faithfully receiving Muscadine grapes from Mr. Bre’nard Williams. Each delivery was prompt and at a consistent price. An invoice was sent with each delivery, requiring payment within 30 days. There may have been a few times that a late payment may have been made; however, it was done within 45 to 60 days. I also did not receive any interest or penalties on my late payments. The samples turned out to be very popular with my regular
"A contract is a legally enforceable promise or set of promises. In other words, when promises have the status of contract, the contracting party harmed by a breach of the contract is entitled to obtain legal remedies against the breaching party" (Mallor et al., 2015, p. 320)
A Theory of Justice is the magnum opus of 20th century social contract theorist and political philosopher, John Rawls. A bit of background into this work is that social contract theory had fallen out of favor with political scientists and philosophers since the last 18th century, with the success of the American Revolution and the apparent triumph of John Locke and Democracy. However, with the advent of modern globalization, the emergence of America as a superpower, but the growing concern of socio-economic disparity necessitated a revisiting of the social contract, what it means, how societies and governments were best constructed.
Thorpe, C. P., & Bailey, J. C. L. (2006). Commercial contracts: A practical guide to deals
The plaintiff firm of surveyors bought a second-hand Rolls Royce from the defendants which developed serious defects after 2,000. It was held that the firm was acting as a consumer and that to buy in the course of a business 'the buying of cars must form at the very least an integral part of the buyer's business or a necessary incidental thereto'. It was emphasised that only in those circumstances could the buyer be said to be on equal footing with his seller in terms of bargaining strength.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
Sam was 17 at the time of which means he was considered to be a minor as he was under 18. Laws relating to contracts with minors are designed to protect minors from entering into unfavourable contracts. In Sam’s situation though it can be considered that if a contract has been formed it’s a beneficial service contract in relation to a minor. This involves contracts for training, education, apprenticeships, or employment of which are binding on minors as it’s for their benefit. An example of this can be seen in the case of Doyle V White City Stadium (1935) where the agreement was binding on the minor as it was for his benefit
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
Implied terms – they are not expressed but they are adopted as “obvious” an individual must comply with (e.g) if buying a product and it is not in a good taste the consumer has the right to return it to the owner for exchange or refund.
Minors: The Australian law restricts the entry of Minors in the formation of the contract. So any contract made with the person under the age of 18 will be considered as voidable contract. (Clarke, 2016)
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.