A contract represents an enforceable accord between two or more individuals or bodies pursuant to which the involved parties undertake a binding duty. Many businesses—both commercial and individual—are performed pursuant to agreements/contracts, either written or oral, and law courts decide argument between the contracted parties. In the case involving Sam and Bob, Sam is entitled to decline selling the book to Bob if Sam and Carl entered into a binding agreement that Carl will buy the book. Sam has to abide by the terms of his agreement with Carl and therefore selling the book to Bob will be a breach of contract.
There are four main essential elements in the formation of a valid contract: capacity—each individual or entity should have the authority or potential so as to enter into an enforceable agreement. This is meant to protect people who have no capacity—minors, intoxicated, or with mental problems—from entering into any contract. A valid and enforceable contract must also entail offer and acceptance. No contract exists unless the offer presented is accepted. This should be clear and explicit; once an offer is accepted, the involved parties are termed to have had ‘meeting of minds’ (Whittaker, 2001, p. 104).The third element is consideration—something of valuable in exchange for another of value—and this may take the form of goods or services, or property. Legal purpose is the last aspects of creating an enforceable contract. This implies that the object of a contract should be consistent and legal with a public policy.
Besides, some form of contracts may be common in a single jurisdiction than the other. Unilateral, bilateral, implied, executory, voidable, and oral are the more common types of contracts applied worldwide. These types of contracts exhibit different contractual terms that have different meanings on agreements. Among these terms is the express contractual term, according to which the obligations the parties enter may be set out in writing or oral. The Parol evidence term/rule necessitates that oral evidence may not be adduced to invigorate, controvert or contradict any written document. According to the exceptions to Parol confirmation rule, proof to the document is sanctioned in various situations. In conditions term, remedy for violation of condition in common law is negation, the victim is permitted to address the agreement as having been disclaimed—as well as damages (Whittaker, 2001, p. 113).
The local council are entitled to use a clause on the receipt issued Barry since it clearly states the condition of use of their services. Barry is not entitled to any compensation due to injury and/or damage caused by the hired chair because he was negligible on his part not read the terms of service stated on the receipt. Based on this scenario, various elements of contract can be applicable in diverse business situations. For instance, Mr. Olley booked a hotel that belonged to a defendant. Olley had not made an...