Today’s essay is going to

 

Contracts

Abstract

Today’s essay is going to discuss differences between several agreements with some examples given.  Some of the agreements that will be discussed are express, implied, unilateral, and bilateral contracts.  There will also be a topic covered about void and voidable agreements.  In this essay will be a long description on how and what elements needs to take place for a formation of a contract; and ending with some examples of a valid consideration.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

Express vs. Implied Contracts

Express agreements contain the specific circumstances in which each individual must understand.  The conditions could be either done verbally or written; but the main purpose is that it is to show the intent of each individual on the agreement.  General rules to follow with express agreements are if an express agreement has already been acknowledged between the parties, then there cannot be any “a-like” subject implied.  Regulations do not imply alternative agreement for express contracts. Implied agreements are actually gotten from cases and conducts of individuals and their circumstances of fact.  Nevertheless, an agreement of this is not conventional nor an account in words.  The legality of this is there is no way of distinguishing what has just been “made up” orally and what has been done by behavior. So in saying, an implied agreement has just as much authority as an express agreement that has risen from the declared intentions of individuals; the one difference for implied agreements; in the court’s eyes that it will collect an individual’s intent from their business and development transactions; (Express and Implied Contracts, 2010).

The judiciary courts do utilize the same process and code of practice to express agreements and implied contracts.  Fact being that there is a separate set of codes for implied agreements; known as quasi-contracts.  These agreements do imply that the laws are unities enforced by the legal system; minus one component in the development making it a binding one; being present.  Courts do apply the same steps and principles to the express contracts, and contracts that are implied, in fact, a totally separate set of principles that are set to the contracts in implied laws.  Known as quasi-contracts, these contracts do imply the law is unions imposed by courts; regardless of at least one essential component to the formation being a binding one being there.  The law has created these types of agreements in order to try to prevent any unjustly happenings; (Express and Implied Contracts, 2010).

An example would be if a couple was to have asked a third party to hold money in trust for them; even so, the third party did not put it in trust; instead, they departed suddenly.  Of course, the courts are not going to allow that third party to keep the money, but because of all the requisite elements of a formal contract have not been proven by the couple.  The law, usually, is cautious of imposing contracts on groups who didn’t settle on terms; the court system finds that a contract implied in the law exists when; one; a defendant gained only by the expense of the plaintiff; two; an enrichment was unjust; three; a plaintiff’s action was not inequitable; and four; seemingly reasonable for the courts to do in light of the relationship between two groups along with their circumstances in a case; (Express and Implied Contracts, 2010).

Unilateral vs. bilateral contract

The two main classes of agreements are called bilateral and unilateral; for unilateral only one individual will make a guarantee to something.  An example would be going to Best Buy and a sales person telling you that if you give them a certain amount of money for say a washer and dryer set; then that sales man has just made you an offer which is a unilateral agreement—this agreement can purely be developed if the consumer, which is you, will accept the offer amount.  Now if the sales man states, “I will promise” to give you, if you “promise” to pay me—that is only a bilateral agreement utterly since it is being proposed, and both sides need to make that promise.  These ideas of unilateral agreements are vital because it is held up by the legal system and holds the individual legally responsible for the promise even if thought was not assumed by the other individual.  An example would be a company being accountable for paying pension to employees who had been promised, even though the employee had given no promise; (LaMance, K. 2012).

What is the Difference between a Unilateral Contract and a Bi-Lateral Contract?

In a bilateral agreement, both individuals are indebted to their promises.  An example of this would be individual X had promised individual Y the amount of $1000 if Y promised to locate X’s mistress.  If Y was to accept this offer and make the promise to locate X’s mistress; then it would be considered a bilateral agreement.  Why? Because Y accepted the offer and now is legally bound to locate the mistress because Y promised to.  If Y is not lucky in locating X’s mistress, X will still end up paying the $1000 to Y if sensible actions have been taken.  Why? Because X made an agreement for a promise; other than the completion of an act of finding the mistress; the slightest difference and easiest way to tell the difference between these two, bilateral and unilateral, is to look at what if being offered.  The unilateral agreement the offeror will offer for a completion of performance of an act, in which the bilateral agreement the offeror if only offering to pay for a promise to perform the act; (LaMance, K. 2012).

Are Unilateral Contracts Enforceable in Court?

Unilateral agreements seem to be a one-sided contract, but they are fully enforceable in a court of law.  One of the most frequent problems with a unilateral agreement is when the offeror is unsuccessful in keeping their promise; even if the other individual completed all acts.  For example, B will promise C two hundred dollars to find a lost dog.  Until C finds the lost dog; B is not responsible to pay C anything; but once C finds the lost dog; the B is responsible for the payment.  If B is unsuccessful in payment, then C has the right to file a claim against B for the money; (LaMance, K. 2012).

Are Advertisements Unilateral Contracts?

The majority of ads aren’t to be considered contracts, but some are to be measured unilateral agreements.  An example of this may be a published piece in the newspaper informing the people that there is a reward for anyone who can find a lost dog—this can be taken as a unilateral agreement.  When an individual responds to this kind of ad; there may be a legal bound to them.  There are various opinions in regard to ads and unilateral agreements within numerous jurisdictions.  Good thing to do is when responding to something like this refer with a lawyer; (LaMance, K. 2012).

Do I need a Lawyer for Unilateral Contracts?

. The unilateral agreement could get to be confusing; specifically, within the technical terms of the “offer,” acceptance and consideration.  If one has law problems that involve the unilateral agreement, it would be best to speak with a contract attorney.  The attorney would be able to explain if you are bound to this agreement.  An attorney is also capable of helping you draft an agreement and list your intentions in an understandable and clear manner; (LaMance, K. 2012).

Void or voidable contract

A void agreement is not acknowledged by law simply because this promise cannot be imposed by either side.  Really, a void agreement is no contract at all; like no agreement was made, and neither side will regain in the occurrence of a break.  The agreement is null and void from the start; even at the discussion or validation phase.  This involves carrying out an obligation that is unlawful or near impossible to act.    A “voidable” agreement is a lawful agreement.  The free individual is permitted to cancel the agreement at which at that time, the agreement will become voided.  This typically will involve circumstances where one group has committed an infringement.

The variances between these two are that the void agreement cannot be functioning under the law; although with a voidable agreement; act is still achievable; even though the contract could be voided at an election of the free or non-breaching group.

Formation of a contract

The formation of a legal agreement…

An agreement can be well-defined as a contract that is between two or more individuals; purpose for legal binding.  The very first necessity to have on any contract is an understanding or deal; one that will consist of an off and acceptance.  Two parties are at least needed one in which will be the offeror, (makes an offer), and the other the offeree, accepts; (Formation of a contract; 2012)

Offer

This phrase “offer” is an inclination to a contract being shaped with the intent that it will turn into an obligatory on the “offeror” if it is acknowledged by the offeree.

 

         Auctions

This is considered to be an invite to indulge, when there are requests for proposals at an auction.

Display of Goods

If there is a tag with a price attached, either in a store or a window shop; this is not an “offer” to sell but instead an invite for consumers to purchase.

Advertisements

Ads for merchandise have been usually acknowledged as invites for a treat; but ads have also been interpreted as proposals open to all worldwide.

Mere Statements of Price

This is a statement in which there is a minimum value where an individual might sell at; but the value of this amount is not going to even amount to the offer.

          Tenders

Where the tender is advertising merchandise for sale, this is not an offer, but an invite for a treat.

           Acceptance

The acceptance of a contract; and to make it a legal binding one; the agreement has to equal the offer; and the offeree needs to be willing to agree to the terms of the proposal.

 

 

        Counter Offers

If a reply to an offer there is a new term or terms of an offer varies then this is an unacceptable amount and will not be accepted.  It is then treated as a “counter offer” in which is either free to accept or not.

Conditional Acceptance

Condition being if an offeree puts one in an acceptance; then it will not be binding.

 

 

Tenders

A tender is what leads to a formation of a contract; tender is considered an offer and with the acceptance of it; it will lead to a binding agreement.  At times problems could arise when “tenders” have an invite for the supply of merchandise.

 

Communication of Acceptance

One of the general steps in this is the “acceptance” needs to be articulated to the offeror; until the point that either it is accepted or no agreement comes out of it.  Another is the acceptance needs to be communicated by the offeree; if and when there is an agreement without authority to validate on behalf of the offeree; the agreement is not valid; (Formation of a contract; 2012)

 

Exceptions to the Communication Rule

The rule of thumb in unilateral agreements communication of acceptance does not apply to the offeror; just carrying out the stipulated task is acceptance enough for the offer.  The offeror even may waive the need to communication of acceptance; example would be where merchandise is released in response to an offer to purchase; (Formation of a contract; 2012)

 

 

Method of Acceptance

Communication is required for this; and the offer needs to be specific on what agreement terms; that need to get to the offeror; so communication is vital here.

Knowledge of the Offer

This is where the offeree accepts an offer, with acknowledgement of it, but with other intentions.

 

Cross-Offers

The example here is if someone is writing a letter (two people) and these two people are wanting to A-sell land and B-purchase A’s land; well doing so in the process they write letters back and forth via post office; letters have possible gotten across in the mail; question is; is this a binding agreement?  There was one judge that did agree; (Formation of a contract; 2012)

 

Termination of the Offer

A couple steps to follow:

a)      Acceptance; once the offer has been taken up on it is now a contract and the offer is off the table.

b)      Rejection; if someone’s offer is rejected then that is the end.

c)      Revocation; an offer can be revoked until one is accepted; the revocation also needs to be communicated to all of the offerees.

d)      Counter offer

e)      Lapse of Time; only when an offer is open for a certain amount of time; then it is off the table when that time is over.

f)        Failure of Condition; offer being made under certain conditions only; if that condition is not satisfied then the offer is not going to be accepted.

g)      Death; you cannot accept an offer after the offeror’s death; unless there was no know knowledge of it and no personal element involved; (Formation of a contract; 2012)

What are three examples of valid consideration?

You need to have some legitimate consideration for a contract to be of legal enforceability.  Now the question of what is consideration?  Bargain, something that is of change in a legal spot between two groups; two or more individuals need to in person for a valid agreement to happen.  At first, they would need to come to an agreement or “bargain for” an exchange between each other; then whatever is being “bargained for needs to have a legal value; in which will be made by the individual whom the promise was made to, and benefit to the individual who makes the promise; (LaMance, K. 2012).  Here is an example:

a)      Rob down the street promises to sell his stereo the Mike for $100, while in exchange, Mike will promise to $100.  These both have the element of consideration and benefit.  Rob’s promise was a bargain plus it induced a detriment to Mike.  Mike’s detriment induced Rob to make a promise; and both sides suffer detriments; Robs being the transfer of ownership of his stereo and Mikes being the payment of $100.  If the promise does

a)      Continues….not induces a detriment and the detriments induce the promise than there is   no “bargain for exchange.”

b)      Sally almost got hit by a car; but Sue pushed her out of the way from being struck.  On the other hand, Sue ended up getting hit by this car and was injured; Sally at a later time promised Sue that she would pay her $500 a month for life.  This is no consideration simply because Sue did not bargain for Sally’s promise; (LaMance, K. 2012).

What are some Examples of Void and Voidable Contracts?

“Void” agreements are invalid by law; even if one group breaks the contract or compensation could not be recouped—basically because there was not a valid agreement.  Examples of void contracts:

a)      Agreements for unlawful topic material like prostitution or gambling.

b)      Agreements that were made by useless individuals who have no authority to make proper decisions; e.g. mentally disturbed.

c)      Agreements that have not been fortified by sufficient thought or if the consideration has been illegal.

d)      Agreements for presentation of impracticable acts.

e)      Agreements that is unscrupulous.

Voidable agreements are reasonable contracts but the free individual can either elect to disaffirm the agreement.  Implementation will still be approaching for the other individual.  Here are some of the usual examples of voidable agreements:

a)      Agreements to where one individual was under age.

b)      Agreements that had been made under a time of duress.

c)      Agreements that have been involved with fraud.

d)      Agreements in which one group had been in disposed; e.g. something that may involve intoxication or irrationality.

An agreement is typically voided due to a matter of the agreement itself.  In dissimilarity, voidable agreements typically show problems in regards to the circumstances of the promise, e.g. in what type of situation the agreement may have been signed; (LaMance, K. 2012).

 


 

References

LaMance, K. (2012). Unilateral Contracts. In LegalMatch. Retrieved October 18, 2012, from LegalMatch website: http://www.legalmatch.com/law-library/article/unilateral-contracts.html

LaMance, K. (2012). Void vs. Voidable Contract Lawyers. In LegalMatch. Retrieved October 18, 2012, from LegalMatch website: http://www.legalmatch.com/law-library/article/unilateral-contracts.html

N, A. (2010). Express and Implied Contracts. In US Legal, Inc. Retrieved October 18, 2012, from US Legal, Inc website: http://contracts.uslegal.com/types-of-contracts/express-and-implied-contracts/

N, A. (2012). Formation of a contract. In Law Teacher. Retrieved October 18, 2012, from Formation of a contract website: http://www.lawteacher.net/contract-law/lecture-notes/agreement-lecture.php

 

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