Contract Validity and Plain Meaning Rule
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Question 1-2
Four elements determine the formation of a contract for it to be valid. These elements are agreement, consideration, contractual capacity, and legality. The components of a deal for it to form a contract are an offer and acceptance. There is an offer from the party requesting to enter a legal agreement with another party. It is a must for another party to accept the standards of the proposal for an agreement formation. Consideration is something like an oath or promises making by the contract party members, and there must be support by sufficient legality and bargaining for the pledge. There is a requirement for the parties’ contractual capacity to develop the contract for it to reach the validity. The legal entity must know the parties entering the contract possession of features that enable them to become competent parties. The aims must not be against the public constitution or law but only accomplishing various goals.
Question 3
After writing an unequivocal and precise contract, the court will enforce enforcement on its apparent terms. The term’s meaning of the agreement should result from the document written alone, and this is also called the direct meaning rule. The words in the contract and their plain meaning set boundaries in parties` intentions when they enter into the contract. The association of the court is associated with giving effects of the agreement according to its purposes. The plain meaning rule is applied in both written and oral contracts provided the words are exact.
Question 4-5
The four requirements of a valid contract is an agreement, considerations, contractual capacity, and legality. There is an agreement in the contract as Mitsui bank offers Duncan the credit development officer to accept the job. The concern is in the contract as the bank gives Duncan a compensation plan that is written. Both parties qualify in contract involvement as Duncan can provide service that Mitsui bank requires. The contract is bilateral, as the compensation strategy was reviewing and amending after every year. Duncan was to be subject to each reviewing and amend; hence, he had a valid compensation contract. The implied warranty contains an obligation from the previous contract. Duncan can only use a written compensation plan because it includes critical information on the unambiguous offer, apparent acceptance, related intent to be bound, and consideration.