Essay on Business Law Problems

2682 Words Sep 30th, 2007 11 Pages
1. What are the four elements of a valid contract? A contract is an "agreement between parties, with terms and conditions that describe the agreement that constitutes a legal obligation" (All Business). A valid contract requires four elements and these are: a. Mutual agreement – there must be a meeting of the minds between parties. There should be an offer and an acceptance. There should be an agreement to enter into the contract b. Consideration - meaning that "every party is conferring a benefit on the other party or himself sustaining a recognizable detriment, such as a reduction of the party's alternative courses of action where the party would otherwise be free to act with respect to the subject matter without any limitation" …show more content…
What will be the long-term impact of electronic contracting on the nation's business? E-commerce has infiltrated our lives that we now consider transacting online or in the internet as a normal thing. E-commerce is the "process of managing online financial transactions by individuals and companies" (Petrova) and part of e-commerce would be electronic contracting. Electronic contracts are contracts consummated electronically which should have the same purpose and validity as that of the ordinary contracts on business will be huge as e-commerce have grown staggeringly in the past decade. According to the report e-commerce will reached to trillions in the years to come. As such, electronic contracting will probably replace traditional contracts. This is because electronic contracting facilitates negotiation, saves time and resources since everything is done via the internet or electronically. Of course, the transaction and the contract should still be examined thoroughly by a legal counsel. Another impact electronic contracting would have to business is the expansion of business market to the global economy. The possibility of doing business around the world electronically is a huge come on for any business. In the internet, transactions and negotiations can be done anytime in cyberspace. Markets are not limited to the local area where the physical office of the business is located. Therefore, market power would be greater as potential

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