Business Law: Contract Validity
Running head: MGM230-0903B-04_P2-IP
MGM230-0903B-04_P2-IP
Tiffany Aliano
Colorado Technical University
.
Abstract
The following article will address the basics of what makes a contract valid. In addition, this paper will include an example of a contract as well as which sections make it a valid contract. Then, a contract made between my husband and me, to demonstrate a simple contract. This paper will also go into the factors that make a verbal contract lawful.
MGM230-0903B-04_P2-IP
Many factors make up a valid contract, or a promise in which the law will enforce. First there needs to be an agreement between the two or more parties involved, a bargain or exchange of service, money or exedra. One main factor is that the contract must be for a lawful purpose, as well as any party involved must be an adult of sound mind. In addition, both parties must be willing to participate in the agreement, and not bullied, harassed or tricked. If the contract is fulfilled by party members then the contract is discharged, but if for any reason a contract is breached certain remedy must be taken under consideration in order to resolve the broken agreement. (Beatty & Samuelson, 2007, p. 128)
Below is an example of a contract, the factors mentioned above will be highlighted in different colors for easy display. The “yellow” box captures the parties entering into the contract, in the “red” box list the purpose of the contract. The next box or “green” box states the conditions in which needs to be met in order for the contract to be fulfilled. The following box or “blue” box states that each party is in the right state of mind in order to participate in said agreement or contract. In the “purple” box, the agreement explains which court has jurisdiction and can enforce said contract. The final box, which is “orange” includes signature lines for the parties involved, which verifies that all party members involved understand the conditions of the
MGM230-0903B-04_P2-IP
Tiffany Aliano
Colorado Technical University
.
Abstract
The following article will address the basics of what makes a contract valid. In addition, this paper will include an example of a contract as well as which sections make it a valid contract. Then, a contract made between my husband and me, to demonstrate a simple contract. This paper will also go into the factors that make a verbal contract lawful.
MGM230-0903B-04_P2-IP
Many factors make up a valid contract, or a promise in which the law will enforce. First there needs to be an agreement between the two or more parties involved, a bargain or exchange of service, money or exedra. One main factor is that the contract must be for a lawful purpose, as well as any party involved must be an adult of sound mind. In addition, both parties must be willing to participate in the agreement, and not bullied, harassed or tricked. If the contract is fulfilled by party members then the contract is discharged, but if for any reason a contract is breached certain remedy must be taken under consideration in order to resolve the broken agreement. (Beatty & Samuelson, 2007, p. 128)
Below is an example of a contract, the factors mentioned above will be highlighted in different colors for easy display. The “yellow” box captures the parties entering into the contract, in the “red” box list the purpose of the contract. The next box or “green” box states the conditions in which needs to be met in order for the contract to be fulfilled. The following box or “blue” box states that each party is in the right state of mind in order to participate in said agreement or contract. In the “purple” box, the agreement explains which court has jurisdiction and can enforce said contract. The final box, which is “orange” includes signature lines for the parties involved, which verifies that all party members involved understand the conditions of the
References: Beatty, J., & Samuelson, S. (2007). Introduction to Contracts. In Calhoun, Jack (Ed.), Introduction to Business Law (Second ed., p. 128). Mason, OH: Thomson Higher Education. Sample Contract. (2008). Retrieved September 4, 2009, from American Land Company Web site: http://www.americanlandco.net/finance/SAMPLE%20contract%20for%20sale%20of%20R.E.-ACREAGEsm.jpg Verbal Contract Information. (2001). Retrieved September 4, 2009, from Online Laywer Service Web site: http://www.onlinelawyersource.com/contract/verbal.html