Identify Components of a Typical Contract Essay

Identify Components of a Typical Contract - Essay Example Parties must 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 noted that minors of age below eighteen years cannot enter into a contract. Another requirement to be met by parties entering into contracts is that concerned parties must ensure that the contract is free from any form of future misunderstandings and has no loopholes. An offer must be made, 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 also stipulates measures to be taken should any of the parties fail to honor terms of the agreement or perform breach of contract. The injured party could rescind the contract or set free the breaching party off any responsibilities coming because of the contract implement ation? The other option available is for the parties to reach an agreement on notation (Walston-Dunham, 2012). The injured side has a right to ask for compensation from the defaulter for damages or loss incurred. The injured party can file for a court order restraining the other party from undertaking any transaction direct related to the agreement. All rules relating to how contracts are formed and how every party is supposed 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 price less than the actual market value and a contract was formed both parties. The contract is legally binding in all terms and both parties are required to observe stated term. Krauses cannot make changes on the contract despite realizing the quoted price is much lower than the market price (Walston-Dunham, 2012). Changes can be implemented to the terms of the contra ct 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 reason 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 the needs of disadvantaged children. The initial 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 hand 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