Gloria Smithson

Topics: Contract, Offer and acceptance, Contract law Pages: 2 (536 words) Published: October 28, 2014

Gloria Smithson
DeVry University

What elements are necessary for a valid contract to exist? Define what constitutes a "valid offer."  Evaluate each proposal and discuss whether each of the offers constitutes a valid offer. Why or why not? A valid contract meets all the necessary fundamentals to establish a contract. A valid contract can be enforced by law. Below are the essential components: Agreement. All parties must agree on all major issues. This requires an offer by the offeror and an acceptance of the offer by the offeree. Consideration. A promise must be reinforced by a bargained-for consideration that is legally sufficient. Common types of consideration include real or personal property, a return promise, some act, or forbearance. Contractual capacity. The parties to a contract must have a minimum mental capacity required by law for a party who enters into a contractual agreement. Lawful object. The object of a contract must be lawful. Most contracts have a lawful object. However, contracts that have an illegal object are void and will not be enforced. A valid offer must clearly specify any term and circumstances that are pertinent to making an agreement. The offer must only provide the recipient with a clear opportunity to accept or reject the contract. No contract can come into existence if the terms of the offer are unclear or loose and indefinite. Each proposal involves a different country. What are the particular concerns for Gloria in doing business in other countries? What contract provisions does she need to include in any business contract in order to protect her business? Gloria’s business is doing well. Expanding her business has help her open up new markets. However, the cost for the raw material has increased 200% with her current supplier. Gloria needs discipline, and that require annual budget, spending targets and regular tracking of her sales and expenses. Some contract provisions are conditions rather than agreements. A...

References: Cheeseman, Henry R. Contemporary Business Law, 8th Edition. Pearson Learning Solutions, 12/2013. VitalBook file.
Nickels, B., Mchugh, J. and Mchugh, S. eds. (2012). Understanding business. 10th ed. McGraw-Hill/Irwin, pp. Chapter 1-2.Cheeseman, Henry R. Contemporary Business Law, 8th Edition. Pearson Learning Solutions, 12/2013. VitalBook file.
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