Identify Components of a Typical Contract Essay

Identify Components of a distinctive Contract - Essay ExampleParties essentialiness meet the legal capacity to enter into valid contracts (Miller & Jentz, 2012). This implies that parties must be of age, to understand stipulations of a contract and be of sound mind. It must be noned that minors of age below eighteen years cannot enter into a contract. An early(a) requirement to be met by parties entering into contracts is that concerned parties must ensure that the contract is free from both form of future misunderstandings and has no loopholes. An offer must be make, and consideration be made for exchange. The purpose for which any contract is made must be for legal objectives. Lastly, parties meeting all the legal requirements seal the contract (Meiners, Ringleb & Edwards, 2012). The law withal stipulates measures to be taken should any of the parties fail to honor terms of the intellect or perform disclose of contract. The injured party could rescind the contract or set fr ee the breaching party off any responsibilities coming because of the contract implementation? The other option available is for the parties to reach an agreement on eminence (Walston-Dunham, 2012). The injured side has a right to ask for compensation from the defaulter for damages or acquittance incurred. The injured party can file for a court order restraining the other party from childbed any transaction direct related to the agreement. All rules relating to how contracts atomic number 18 formed and how every party is alleged(a) to behave are contained in the law of contract (Walston-Dunham, 2012). Case 1 The two parties here are on contract, to sell ten acres of land. The seller, Krauses in the first instance offered a footing slight than the actual market value and a contract was formed both parties. The contract is legally covert in all terms and both parties are required to observe stated term. Krauses cannot make changes on the contract despite realizing the quoted p rice is much lower than the market price (Walston-Dunham, 2012). Changes can be enforced to the terms of the contract on exceptional cases such as when the contract ends (Meiners, Ringleb & Edwards, 2012). The contract could also be terminated if both parties reach a mutual agreement to end the contract and in other cases when both parties have fulfilled their obligation to each other leaving no other basis for the parties to carry out the contract (Walston-Dunham, 2012). If another situation arose and Krauses breaches the contract terms by indicating a price higher than agreed in writing, Jud is not liable to adhering to the stipulated terms as Krauses has performed breach of contract by false writing for his personal reasons (Miller & Jentz, 2012). As a result, Jud has right to terminate the contract as it does not act as per the laid down agreement (Walston-Dunham, 2012). Case 2 The second case implies a contract whereby there are two parties Gerald and a centre looking into th e needs of disadvantaged children. The sign agreement was that Gerald who is an event organizer stages a concert to raise funds for the kids centre. However, Gerald thereafter decides not to spend over the concert earnings to the charity home as per the agreement. Both parties were well aware of the stipulations of the agreement and had the intention to abide by them (Meiners, Ringleb & Edwards, 2012). As earlier stated, for a contract to be valid it must fulfill all terms laid down by law. One of the stipulati