The Five Elements Of An Enforceable Contract

1577 Words 6 Pages
In view of an enforceable contract five specific elements must be in place. These elements can make the difference between an enforceable or unenforceable contract. According to Seaquist (2012, chapter 9.2), a contract must contain at least one promise that are enforceable, however, not all promises rise to the level of a contract. The five elements need to be present for the contract to be valid. These elements include offer, acceptance, consideration, capacity, and legality. In addition, this paper will also explain why this contract is governed by common law and not Uniform Commercial Code (UCC). Therefore, this paper will examine the validity of a contract made between an employer (Fabulous Hotel) and an employee (me) and will examine whether …show more content…
For, an offer to be legally binding the language must be definite and certain; it must clearly convey the intent of the promise or agreement. Another aspect that separates a legally binding contract from one that is not enforceable is that it must look like a contract and not anything else. Third, the offer must be communicated to the offeree. In other words, it will appear to a third party that the two parties did enter into a contract (Seaquist, 2012). There are other aspects of this element that can take place, such as lapse where a certain amount of time has passed and the offeree has not accepted. The amount of time depends upon the situation. There is also the aspect of rejection and or counteroffer. This takes place when the offeree rejects the first offer and/or makes a counteroffer. Another aspect that may take place after the offer, is revocation where the offeror retracts the original offer before the offeree can accept (Seaquist, 2012). The last phase that may take place is the acceptance of the offer from the offeree. This can be a mirror image acceptance where every part is accepted by the offeree. For example, the Hotel offers to give me employment as chef for two years, and I accept this offer by mirroring that statement (this is considered governed by common law), I accept employment from your establishment as chef for two years. The element of acceptance takes place after a valid offer, and is the …show more content…
If the length of distance was too great. For example, if the contract with Fabulous Hotel and the employee (me) stated that I could not work for another restaurant within the whole state for two years after leaving Fabulous Hotel, this would have been rendered illegal in a court of law and viewed as unenforceable contract(Seaquist, 2012). Bishara, (2015, p 3) expresses that…”A departing key employee can seriously harm an organization by leaving to work for the organization’s competitors or by providing these competitors with the organization’s confidential business information.” Thus, organizations usually have stout reasons to pursue wide-ranging covenants for noncompetition clauses with potential employees (Bishara,

Related Documents

Related Topics