Business Law
Elements of a contract
Elements of a contract refer to the items which, when a party files a case claiming a breach of an agreement, the judge looks to answer if the contract existed. The four elements of a contract are offer, considerations, acceptance and mutuality. The four items are the things that define a contract. There must be between legal age and sound mind individuals. Therefore, the contact must be a legal in order for it to be agreed. An offer is usually made by one party and thereafter agreed by the other party binding to the contract. In a contract the complaining party must proof that the contract existed, by ensuring the contact meets the four elements of a contract.
Offer– refers to the promise that a party in an agreement will promise to the other party for agreeing to do a specified action in the future.
Consideration – this refers to the things that are of value that were promised in the offer in exchange of a particular specified action. The consideration can take the form of essential expenditure o money, services, efforts, and reliance on the promise. Something of value was promised in exchange for the specified action or nonaction. Thus, consideration is the factor that induces a contract between parties
Acceptance – This refers to the sections in which, the parties either agree or reject the offer made in the contract. Acceptance is usually in deeds, performance or in words. The acceptance mirrors the terms and conditions, made in the mutual agreement. Hence the acceptance can be counter offered or rejected.
Mutuality – For the contract to be agreed the parties had a meeting of minds, in which the parties agreed and understood the terms of the contract.
Contract Dispute
Case facts
Parties in an agreement are legally bound to the duties and responsibilities of each party. In order, to avoid disputes each party must ensure they enforce the requirements in the elements of a contract. But in case, one party goes goes against the terms of the contract, then the agreement will be breached.
Issue before the court,
The issue in court is an agreement between the government, and a road construction company whose contract was cut off because the company failed to adhere to the terms of the offer. The company was to build a road, but instead the company decided to give the job to another company which was contrary to the agreement. The company was expected to construct the road without giving it to another party. Therefore, the government decided to end the contract, but the company was not satisfied with the decision, hence the company headed to a high court to resolve the offer.
Decision and Reasoning of court.
In the court, the judge gave a ruling. In the ruling the judge listened to both of the parties in the dispute, and ruled that the company was wrong because it went against the offer, in which it was supposed to construct the road without involving any other outside party.
References
Marsh, P. (2017). Contract law. In Contracting for project management (pp. 65-80). Routledge.