Running head: CONTRACTS
Contracts, What Are They? How Do They Work
BUS311 Business Law I
In this paper, I will reflect on the operation of contracts. Business law shows how contracts may be classified in several ways depending on the manner in which they are created, expressed, or performed. I have learned a lot from this course and I will use that to help write this paper. In the following paper I will discuss the oral or written contracts; I will discuss express or implied contracts, and will discuss formal or simple contracts. I will also discuss the impact of the contracts in a business and show the true propose of contracts. I will show what is needed in a contract to be legally enforceable. I will discuss how a contract must contain the following six elements: an offer and acceptances, a mutual agreement, a consideration, a competent parties, and legality of purpose, and proper form. All of this will be discussed in depth in the following paper.
Contracts within Business
Even though the operation of contracts, business law show how contracts may be classified in several ways depending on the manner in which they are created, expressed, or performed. These includes: either oral or written; it may be express or implied; and it may be formal or simple. A contract is a legally enforceable agreement that is created when two or more people agree to perform or to avoid performing certain acts that they have a legal right to do and that meet certain legal requirements (Liuzzo, 2013). An example of a contract exists between an assistant and the manger. That contact can be extended once the assistant becomes a partner and so forth. Contracts can be extended or changed as needed to reflect the contractual relationship. To be a legally enforceable contract, it must contain the following six elements: an offer and acceptances, a mutual agreement, a consideration, competent parties, and legality of purpose, and proper form (Liuzzo, 2013). Now if one of these elements is missing then the court will refuse to enforce the contract. The impacts of contracts in everyday operation of a business are very important and it is done through analyzing identifying all the legal issue and elements of a contract. Offer and Acceptance is the most important feature of a contract is that one party makes an offer and for an arrangement to be reached that the other party accepts (Liuzzo, 2013). After a valid offer has been made the two parties should ask to enter a defined contractual agreement (Contract Law, 2001). To make sure an offer of the house price is clear and definite; the price needs to be clearly communicated to the offered. Offers can be made to individuals or to the general public, such as advertising (Contract Law, 2001). After the offer has been made, then negotiations between the two parties can begin conducting personally through an agent. In the process of buying a house it’s usually through and agent (Contract Law, 2001). Mutual agreement is where the parties of a contract must come to a mutual agreement (Liuzzo, 2013). A good example would be when one buys a home through a mutual agreement, which is when two parties come to an agreement on the worth of the home. Both parties must understand the agreement, and make sure no misunderstanding or mistakes exist between the two parties (Contract Law, 2001). The contract must show that a mutual agreement has been made, referred to as the meeting of the minds (Liuzzo, 2013). An exchange of consideration must be included in any valid contract (Liuzzo, 2013). Between the parties, something of real value must be exchanged, whether it can be cash, tangible objects, the performance of an act, an agreement to refrain from performance of an act that the party has the right to perform or a promise of...
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Larson, A. (2010, December). Contract Law - An Introduction. Retrieved from Expert Law: http://www.expertlaw.com/library/business/contract_law.html
Liuzzo, A. L. (2013). Essentials of Business Law. New York : McGraw - Hill Higher Education .
Rao, S. R. (2008, October 4). Competent to Contract. Retrieved from Citeman.com: http://www.citeman.com/4128-competent-to-contract.html
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