Elements of a contract
Running head: ELEMENTS OF A 1
Elements of a Contract
Moses Parker
BUS 670: Legal Environment
Porf. Stacey Callaway
October 6, 2014, 2014
ELEMENTS OF A 2
Elements of a Contract
Indeed, contracts plays a very significant role in all aspects of society; according to Nysten & Lehto, (2012), “Business people often understand contracts as legal documents, designed by lawyers in order to protect firms against risks and prepare them for potential litigation in the worst case scenario” ( pp. 462-478). However, there are indeed various elements that directly contributes to the formation, and subsequent validation of a potential contract. As such, with regard to the contract involving the noncompetition clause at Fabulous Hotel, I will describe each of those individual elements, as they relates to that particular contract. Additionally, I will give the specific reasons why this particular contract is either covered by common law, or the uniform commercial code; as well as show two potential circumstances where this contract would be unenforceable.
Although this contract contains a noncompetition clause, it must nonetheless meet the criteria--in order to determine its validity--which a contract would have to meet if it did not contain such a clause. Seaquist (2012) relates to this wherein she says, “Although all contracts contain promises that are enforceable, not all promises rise to the level of a contract. Rather, only promises that meet certain criteria are considered to be valid contracts” (p. 9.2). As such, there are five elements that are given; elements which invariably determines the validity of a given contract; the first of these five are what has been termed the offer. Indeed, Seaquist (2012) has defined the
Elements of a Contract
Moses Parker
BUS 670: Legal Environment
Porf. Stacey Callaway
October 6, 2014, 2014
ELEMENTS OF A 2
Elements of a Contract
Indeed, contracts plays a very significant role in all aspects of society; according to Nysten & Lehto, (2012), “Business people often understand contracts as legal documents, designed by lawyers in order to protect firms against risks and prepare them for potential litigation in the worst case scenario” ( pp. 462-478). However, there are indeed various elements that directly contributes to the formation, and subsequent validation of a potential contract. As such, with regard to the contract involving the noncompetition clause at Fabulous Hotel, I will describe each of those individual elements, as they relates to that particular contract. Additionally, I will give the specific reasons why this particular contract is either covered by common law, or the uniform commercial code; as well as show two potential circumstances where this contract would be unenforceable.
Although this contract contains a noncompetition clause, it must nonetheless meet the criteria--in order to determine its validity--which a contract would have to meet if it did not contain such a clause. Seaquist (2012) relates to this wherein she says, “Although all contracts contain promises that are enforceable, not all promises rise to the level of a contract. Rather, only promises that meet certain criteria are considered to be valid contracts” (p. 9.2). As such, there are five elements that are given; elements which invariably determines the validity of a given contract; the first of these five are what has been termed the offer. Indeed, Seaquist (2012) has defined the