Essay

854 Words 4 Pages
Essential Elements of Contracts

Contracts are made every day between people and companies. These contracts are made online, in person, on paper, etc. There are contracts that are even legal that are verbal contracts. Most people feel that a contract has to be annotated on paper for it to be legal and binding. This is not always true. Oral contracts, meaning spoken contracts are just as binding and also just as legal. Let’s take a look at what makes a contract. Common law contacts usually have four basic concepts: When and how the contract was formed, when the party may escape or get out of the obligations of that contract, the meaning and terms of the contract, and the remedy to be given for a breach of that contract. When looking
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Voidable contracts are the ones who one or both parties have the option to terminate. Having a contract with a minor, who is not legally able to make their own decisions without the consent of a parent, is an example of a voidable contract. This also can be the case in an unenforceable contract. Federally, any sale of goods over the amount of 5,000 dollars must be in writing. Legally you cannot make a verbal contract for the sale of goods over this price without it being in writing. Incomplete, questionable, and severe and unenforceable clauses are also issues when dealing with contracts. These are when both parties are uncertain of the terms, and the contract does not key in on the exact issues, or is incomplete.
Now once all of the parties have entered into a legal contract then there are remedies or breach of contract issues is one party does not abide by the rules set forth in that contract. A breach of contract occurs when a party has signed the agreement fails to live up to the agreement. Remedies are basically damages for a breach of contract. It is usually in the form of money. There are three ways that are described that most courts will use to calculate the value of damages. Assessing the sum of damages and restoring the party to the position it would have been in if the expected performance, or promise would have met the expectations. Then when this way is not available or cannot help in this

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