Contract: Executive Summary

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Executive Summary
There are different types of contracts bilateral, unilateral, expressed and implied-in-fact. What are the four elements of a valid contract? These elements required for a valid contract consists of; a meeting of the minds between the parties, consideration, an agreement to enter into the contract and legal competence of each party. (Allbusiness.com, 2007) A meeting of the minds between the parties is where both parties agree on what is being sold, purchased or traded. Consideration which is that what is being sold, purchased or traded has “legal value” (AIU Online Business Law Course Material, 2007) Legal value consists of money, land, services and thing else that has value. (AIU Online Business Law Course Material, 2007) An agreement to enter into the contract is where both parties agree upon what consideration is to be exchanged. (Allbusiness.com, 2007) And last all parties entered into the contract must be legally competent; anyone under the age of 18, person lacking of sound mind or person who lacks authority can not legally enter into a contract. (Allbuisness.com, 2007) Objective theory is where a third party such as a judge or jury, determines whether a contract as been formed. This theory is how a person understands actions and words to believe that a contract exists, rather than to find there is no contract. (Net Industries, 2007) How does that theory apply to this case? In the Pepsi Harrier-Jet case, John Leonard really thought he had purchased the Harrier-Jet, where as the judge believed there was no upholding evidence to prove Pepsi entered into legal contract with Mr. Leonard. This is where objective theory was applied to this case. Why do you think the court held that there was not a valid agreement here? In order to have a valid agreement the four elements of a contract must be applied. You look at if there was a meeting of the minds, no John Leonard and Pepsi did not meet with each other to discuss what was to be...
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