Under English law, a legally binding agreement is a contract among two parties for prerequisites related to services or exchange of goods. A contract is intended to make legally bind so that further proceedings of courts could be executed in future if necessary.
In this situation, the contract will be an enforceable contract, which is defined as a contract in which one party is legally obliged to perform their actions for other party with whom they have signed agreement of contract.
Although both oral and written contracts can be enforceable for courts proceedings, but oral contracts can be subject of misjudged interpretation of words from both parties. Therefore, written contracts …show more content…
• The contract also contains ‘considerations’ which are services, goods or any actions of legal value that accepting party is bound to provide in replace of money.
• Both parties should aim for the contract to be legal and the objective of contract should also be legal.
• Contract should also state the conditions, obligations and rights of both parties. These conditions are based upon those which are specified by parties or those which are bound to be fulfilled because of their presence in country’s constitution.
• Some clauses are also included in contract that determines that if unintended events are faced, one party or both parties will not be responsible. These are exclusion clauses that also affirm the payments, actions and duration of time that the contract would remain valid.
• The contract terms and conditions are bound to be corresponding to Unfair Contract Terms Act 1977.
Only when other party accepts the offer, creates a legally binding business contract. The above key points are needed to be complied with, in order to avoid any issues that may be countered in future. Moreover, when once the contract is created, further disputes if created between parties, can be taken to the court, where additional orders to execute will be …show more content…
A breach of business contract is a term used when one or more conditions specified in business contract are not completed by first party or the second party. Consequently, it takes the issue of breach of contract to the court where the responsible party is sued to provide certain amount of money as substitute to damages that occurred because of their action. Moreover, Simon can claim his damages as well as discharge himself for any other conditions that he was further responsible to follow and complete.
Even if Payn does not leave the band, but deliberately performs in inadequate or disappointing way can lead to legal actions against him.
According to English law, when breach of contract occurs, the first party receives opportunity to address the issue of breach of contract in following ways:
Payn will be responsible if Simon’s TV show receive low viewership or get into a loss. He would be bounded by the law to give money for the loss created because of breach of law. Anyhow, if the loss and damages are not occurred, Payn can still be claimed to provide money but comparatively of lower amount.
If Simon pays No Direction band members in advance and Payn fails to give adequate performance on the TV show, Simon can further claim his money from all band members or from Payn alone, in order to prevent from becoming developed at the expenditure