unit 1 essay - Ms Goodman Business 1100 honors hybrid Essay...

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Ms Goodman Business 1100 honors hybrid Essay Question 1 Contracts are one of the most important documents in business. It can mean the difference between profit or loss, depending on how well written it is, or how favorable the wording is for you. A contract, improperly written, can void a contract that your business desperately needed, leading to your bankruptcy. There are many elements and criteria you must follow in order to prove the validity of the contract. All of these requirements have been debated and it is assumed that the system we have now in determining if an agreement is a contract or if it’s voidable is the most effective and just way. Something a contract needs is offer and acceptance. This is the debating process to start to get a contract. The offeror or someone makes an offer to you, the offeree, and you either accept, reject, or present a counteroffer. For example John wants you to build a patio for him, he says he will pay you 1000 for this 2 day job. As the builder you can either accept it, reject it, or say I’d like 1500 for the 2 day job (counteroffer). This is the part of the contract where the demand is laid out and someone is interested in helping you fulfill this demand. After the offers have been places there is the acceptance is when they finally come to terms say at 1250 for 2 day job. This acceptance is a promise by the offeree to be bound by the exact terms proposed by the offeror. This process is also called meeting of the minds. Consideration is the most important part of the contract to many people that love money or compensation. During the negotiation of a contract you must decide how will you pay for the service. Consideration is something of legal value offered by one party and accepted by another as an inducement to perform an act. In my example the 1250 for the builder building John’s patio would be the consideration. In reality anything can be consideration as long as its agreed upon, even a promise of a great bargain or deal is sufficient to fulfill the contractual requirement of consideration. Firstly, a contract must be entered into as the free and voluntary act of all parties involved. Which brings me to the element of having legally competent parties. Anyone entering into a contract must have legal capacity, meaning they are of legal age and have enough mental capacity to understand the consequences
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This essay was uploaded on 04/22/2008 for the course BUS 1100 taught by Professor Goodman during the Spring '07 term at College of DuPage.

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unit 1 essay - Ms Goodman Business 1100 honors hybrid Essay...

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