Contract Law: Lesson 5 Short Answers
1. A contract is a binding agreement between two or more persons or parties and make a promise or set of promises for the breach of which the law in some way recognizes a duty. The interactions that are included in a valid contract are offer, acceptance, consideration, capacity, and legality.
Offer: The first element in a valid contract would be offer. if there is no offer than there will be no contract. Every contract involves at least 2 parties, the offeror which is the one who made the offer and the offeree which is the one whom the offer was made to. Once you make an offer, the offeror promises to comply with something. The offeree has the privilege to create the contract by accepting the offerors offer. Acceptance: Acceptance may be communicated through words, deeds or performance in the contract. Generally, the acceptance must mirror the terms of the offer. If not, the acceptance is viewed as a denial and counteroffer. …show more content…
Certain persons do not have this capacity, for example, minors mentally incompetent persons and people under the influence of drugs or alcohol.
Legality: a contract must have legal purpose. Under the modern law of contracts, a contract is considered supported by legal value if the promise suffers a legal loss or the promiser receives a legal benefit.
2. An unenforceable contract it is not enforced due to a legal defense. The contract cannot be enforced in a court of law. For example, Mary bought a house from Pete using a written purchase and sale agreement. After taking possession, Mary discovers a small leak in a pipe in the crawl space of the house, but does not take any action against Pete for four years. The court decided that the contract was unenforceable because of Mary’s delay, even though the Statute of Limitations had not expired. The court ruling was based on the Doctrine of