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Report on Contract Law and Types of Contracts

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Added on  2021-10-13

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A contract is a legally enforceable commitment. A promise can be a commitment to carry out or forego taking action. A contract must be made by two or more parties, usually one of whom makes an offer and the other accepts it. Furthermore, contracts are frequently linked to projects, when one party bargains with other parties to carry out a project or a portion of a project. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, expressed through a contract-compliant offer.

Report on Contract Law and Types of Contracts

   Added on 2021-10-13

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CONTRACT LAW
2.1. DEFINITION OF CONTRACT:
A contract, in its simplest definition, is a legally enforceable promise. A promise can be to do something
or refuse to do something. The making of a contract requires the consent of two or more people, one
of whom usually makes an offer and the other accepts it. In addition, contracts are often associated
with projects, in which one party negotiates with other parties to implement a project or part of a
project. The basic elements required for the agreement to be a legally enforceable contract are: mutual
assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
2.2. THREE TYPES OF CONTRACTS:
2.2.1. Oral Contract
a. Definition:
Oral contracts are verbal agreements between two parties. An oral contract occurs when spoken
words are rendered valid and legally enforceable in a court of law.
However, an oral contract is difficult to be legally enforceable unless it is provable in court, and it must
meet various requirements of contract formation. Further, it must not be in violation of statutes
prohibiting oral contracts.
For example, state statutes may require sales involving real property, and the agreements may have
to be in writing, or the performance must take over a year.
ADVANTAGES DISADVANTAGES
Easy to use Oral contracts do not have any
evidences to support its agreements
Create comfort and flexibility. More difficult to prove the existence
of the contract
It is easier for one or both sides to
forget certain parts of it, or disagree
on what certain details were.
b. Pros and cons:
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2.2.2. Written Contract
a. Definition:
A written contract is a written document that outlines an agreement between two parties. Individuals,
businesses, or organizations may be involved. To be regarded valid, the agreement must include all
components or components of the agreement, and each person involved must agree to each other
conditions and sign the document.
b. Pros and cons:
ADVANTAGES DISADVANTAGES
Provides proof of what you and the other party
agreed on. Inconvenient
By making the agreement clear from the start, it
helps to avoid future misunderstandings or problems. Time-consuming
Gives you security and peace of mind because the
conditions of the agreement are written down and
cannot be changed.
Reduce the likelihood of a disagreement about
payments, duties, and timelines for the service to be
done under the contract.
Describes how any party might terminate the
contract before the work is finished.
2.2.3. E- contract
a. Definition:
An E-Contract, or electronic contract, is a legal document made and signed online which is basically a
digital adaptation of a traditional paper contract. Likewise with paper contracts, E-Contracts are
agreements endorsed by two parties. They are enforceable and legally restricting archives that are
ordinarily utilized in regards to online merchandise, employment, deals, service, or tenancy... With a
run of the mill paper contract, one parties drafts an "offer" and the other party peruses it (IRMI.com,
2021).
In the event that the two parties agree to the terms and conditions recorded in this initial offer, they
will each sign the archive and it turns into a legitimate agreement. Each parties must hold up to their
finish of the understanding although a paper copy is not presented, a digital signature actually enters
both parties into a legal agreement.
Report on Contract Law and Types of Contracts_2
ADVANTAGES DISADVANTAGES
Easier to get the information right:
E-contracts minimize the risk of people
making mistakes or leaving sections blank.
Because they can make the important
sections of the contract mandatory to
complete, the signee won’t be able to
send it back to them until they’ve done it
right.
Risk of publicing the individual information
and people quite to reliant on service:
Some location may not be able to access
the E- contract.
Speed and ease of transfer:
Within minutes, the recipient can have the
contract and return it to another party as
simply as they got it.
Risk of a system crash:
Belongs to the online storage system or the
internal computer system crashes, might
lose data, including contracts.
Easier to storage:
A huge plus of using digital contracts can
storage in space and cost on the computer
or internet.
Unreliable:
Some people is not be able to believe in the
contract that not face to face, or another
think the e-contract is so complex with a lot
of step must be done and might not like
them
Easier to access and online merchandise:
Can deal the contract at everywhere
b. Pros and cons:
Report on Contract Law and Types of Contracts_3
2.3. VALIDITY OF CONTRACT:
2.3.1. Valid contract:
A valid contract is a written or expressed agreement between two parties for the supply of a product or
service. Basically, there are six elements of a contract that make it a legal and binding document. For a
contract to be valid, it must contain:
The offer spells out the specifics of exactly what will be provided.
Acceptance or consent of the other party to the offer presented.
Consider, or money or something of interest is exchanged between the parties.
Competence of the parties in terms of age and intelligence.
Intent to fulfill the promise of both parties.
The subject matter of the contract is lawful and is not against public policy or violates the law.
In other words, a contract is enforceable when both parties agree to something, fulfill their promise with
money or something of value to comply with the law (Study.com,2021)
2.3.2. Invalid contract:
a. Void contract:
The contract is void when it violates the prohibition of the law, contrary to social morality. The word
void means something invalid and it is not legally binding. When we say a contract is void, that means it
is not supported by the force of law. That makes it unenforceable, and if anyone breaches an
unenforceable contract, the other party to the contract has no legal recourse against them. (UpCounsel,
2021)
Contracts can be effective when formed and then become void. This happens when a contract fulfills all
the necessary conditions for a contract to be in effect when it was formed, but the law changes later or
something changes make the performance of the contract untenable. impossible and beyond the
imagination or beyond the control of the parties involved. Then at that point it becomes void.
(UpCounsel, 2021)
The contract is void due to deception, threat or coercion. Deception in a contract is an
intentional act of one party or a third party to mislead the other party about the subject, nature
of the object or the content of a civil transaction, so that contract has been established. Threat
or coercion in a contract is an intentional act by one party or a third person to force the other
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