Preview

Sab/330 Week 1

Good Essays
Open Document
Open Document
910 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Sab/330 Week 1
SAB 330
Week 8

PUBLIC POLICIES AND ECONOMIC ORGANIZATIONS

1) Explain term of “consideration” The "consideration" requirement for creating a Common Law contract requires that both sides of the agreement give consideration. "Consideration" is the giving of bargained for legal value.
The "bargained for" requirement means only that the legal value given is that which the other party requested, i.e. that there has been some communication about who gives or does what for whom. There is seldom, if ever, a problem with that part.
The "legal value" part is somewhat more complex, and is usually the point of disagreements concerning consideration. "Legal value" does not mean that something has a particular market value or that the parties agree on its worth.

2) Give some example of
…show more content…
4) Example of “formal” and “informal” contracts
Formal contracts are contracts that are required to be written to be enforceable or valid. Formal contracts are not considered legal contracts unless they are written with certain language as required by law. Types of formal contracts include contracts that require seals, negotiable instruments and recognizances.

An informal contract is any contract that does not require specific legal requirements to be deemed valid and enforceable. Informal contracts differ from formal contracts in that they do not have to be sealed, written, or witnessed. Informal contracts are commonly referred to as "social contracts." An informal contract should be avoided if you do not have complete trust in the person with whom you are entering into contract.

5) Legal Briefcase 1. In this case, Dodson is 16 years old, and he buys a truck with the money of his girlfriend ‘s grandmother to Shrader’s Auto . he paid $4,900. But 9 months later, the truck had mechanical issues. But Dodson, hadn’t the money to pay the reparation. So he had continue to use the truck until it became

You May Also Find These Documents Helpful

  • Good Essays

    The definition of a valid contract is that it complies with all of the legal requirements for a contract. There are several types of contracts. First is a unilateral contract, which is one that only one of the parties involved makes the promise. The other party involved would than act in return for the promise stated. A bilateral contract is when both partied make a promise. An implied contract is when there are surrounding circumstances along with facts, which show that a promise was created. A contract is not executed when all of the parties involved have fully completed their promise and contractual duties.…

    • 620 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    In a typical person’s lifetime they will encounter many situations where they will enter into a contract with someone else. There are many different types of contracts that we may enter into, some knowingly and even some unconsciously. Buying a car with financing is a type of loan, entering into a new work place, and even getting a haircut is a type of contract.…

    • 552 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Contract Validity Memorandum

    • 2982 Words
    • 12 Pages

    And as business people know, a bargain involves more than an offer and an acceptance. It also involves a mutual exchange of value.” Consideration offers a sure legal test for binding commercial relationships. Without consideration, a contract is simply a gratuitous promise that is not enforceable. There must be sufficient consideration, which is anything of value in the eyes of the law. However, consideration does not have to be adequate, meaning that it does not need to have the same value as the consideration given in exchange. The court will not assess the adequacy of the consideration unless there are special circumstances such as suspicions of fraud or undue influence. However, a person who requests goods or services from another is obligated by an implied promise to pay a reasonable price for the goods or services. Rather than seeking damages for breach of contract, the supplier of the goods or services would seek payment under the principle of quantum meruit (reasonable payment for services…

    • 2982 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    3. Both parties are receiving consideration or value from the agreement: This is most commonly money in exchange for a good or service, but there are other methods of consideration, especially in the business arena.…

    • 387 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    To restrain Edwin from selling the vintage car to the other party, Adam can file for an injunction for a court order to ensure that the vintage car is not sold to others and at the same time, a specific performance can be filed to the court to demand Edwin to adhere to the terms of the existing contract by selling the car to Adam with the agreed price. Due to the fact that the vintage cars cannot be acquired easily, compensation of damages will not be an adequate remedy to…

    • 965 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    There are numbers of cases in contract law which demonstrates that the concept of consideration has been changed throughout the time. For instant the case of Stilk v Myrick (1809) states that if one of the parties does what they contractually are bounded to do, there is no consideration. In other words the performance of the pre-existing contract could not constitute consideration. However, the case of William v Roffey Brothers claims that there are more complex situations in commercial contracts. The court held that the case was economic duress and it brings the “practical benefit” to the doctrine of consideration. The development of the doctrine of consideration was necessary in order to get the commercial certainty in transactions. In 1991 the Australian court stated that the practical benefit may be found in every transaction and there might be practical benefits for the promise, but on the other hand, promisor could face unfair pressure and the practical benefit is not worth more than a remedy against the other party. It is important to note that for every agreement there are various number of elements to consider.…

    • 1899 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Contracts are a voluntary arrangement involving two or more parties which is enforced by law as a binding agreement, which is one of the cornerstones of our economic environment from early stage to the modern society. Several essential conditions constitute the process of forming a standard contract.…

    • 1949 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    A valid contract is a contract that complies with all the essentials of a contract and is binding and enforceable on all parties (Investorwords, n.d).…

    • 384 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Offer and Acceptance

    • 1099 Words
    • 5 Pages

    A contract is supported through deliberation defining something of legal worth. “According to Cheeseman the consideration can consist of money, property, the provision of services, the forbearance of a right, or anything else of value” (p. 181). The consideration makes the contract enforceable.…

    • 1099 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    notes law

    • 10351 Words
    • 35 Pages

    In a contract, both parties must provide consideration. The promisor by promising to perform the obligation contained in his proposal. While the promisee by promising to do or actually doing what is requested in the proposal.…

    • 10351 Words
    • 35 Pages
    Powerful Essays
  • Satisfactory Essays

    Consideration means something in return (quid pro quo). For a valid contract both parties must have provided consideration, i.e. each side must promise to give or do something for other. However, it must be legal, real, harmless and not immoral.…

    • 496 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    A contract is an agreement which is legally binding on the parties to it and which if broken may be enforced by action in court against the party that has broken it. A contract may be void or voidable. A void contract is that which lacks the essential ingredients or elements of valid contract and therefore of no legal effect. A voidable contract is that which is valid in the first place but may be ended at the instance of one of the parties to it. Such contracts include guarantee with a bank of money lender, hire purchase and sale or leasing of land. The legal consequences of non-compliance are that they are not enforceable at law though they are not necessarily void. However, some categories of contracts must of necessity be in writing or else they shall be void absolutely. These include transfer of shares, marine insurance and hire purchase agreements. As a general rule also, all contracts are in the nature of agreement: however, not all agreements may constitute a contract properly so called. For instance, an agreement for the sale of a parcel of land is intended to be binding and enforceable at law, whereas, an invitation to a luncheon which after all, did not hold may not be enforceable at the suit of the disappointed party.…

    • 1559 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Contract Law in Sri Lanka

    • 4108 Words
    • 17 Pages

    Contract is an official agreement. It could be written or even be in oral. Contracts can be written by using formal or informal terms, or entirely verbal or spoken. It is a promise made between two or more parties that which allow the courts to make judgment. A contract has six important elements so that it will be valid which is offer, acceptance, consideration, intention to create legal relation, certainty and capacity. If the main elements are not in contract, it would be an invalid contract.…

    • 4108 Words
    • 17 Pages
    Good Essays
  • Good Essays

    Law of Contract

    • 7871 Words
    • 32 Pages

    These are contracts whose formation is not subject to any legal formalities. The contract may be oral, written or implied from the conduct of the parties e.g. Contract of sale of goods…

    • 7871 Words
    • 32 Pages
    Good Essays
  • Good Essays

    Contract

    • 718 Words
    • 3 Pages

    1. Offer and Acceptance. In order to create a valid contract, there must be a 'lawful offer' by one party and 'lawful acceptance' of the same by the other party.…

    • 718 Words
    • 3 Pages
    Good Essays