BUSINESS LAW I UNIT 5

BUSINESS LAW I UNIT 5 - UNIT 5 DEFINITIONS BUSINESS LAW I...

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UNIT 5 DEFINITIONS BUSINESS LAW I UNIT 5 DEFINITIONS ANDREW L. FOXWORTH JR.
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UNIT 5 DEFINITIONS DEFINITION a).LEGALLY ENFORCEABLE: Legally enforceable is defined as the essence of a contract that is a promise or a set of promises (Chapt. 9 pg. 290) In other words when a contract is considered a promise or a set of promises to a person or corporation. Those promises become legally enforceable. b). For example, company A is hired to clean offices for company B on Tue and Thur. every week according to the contract written up. Company A only cleans office 1 time that week. It is considered breach of contract and therefore become legally enforceable. c). A contract is binding agreement between two or more parties that is enforceable by law. For an agreement between two parties to be legally enforceable, four requirements must be met: The parties must be identifiable and competent – Unless both parties to a contract are known, there is no method of determining who is obligated to meet the terms of the contract. In addition, a party to a contract must be of legal age, over eighteen in Minnesota, and may not be suffering from a mental disability. The subject matter of the agreement must be legal and not violate public policy – A contract whose subject matter is illegal or against public policy will not be enforceable. For example, the law imposes certain limitations on the amount of interest that can be charged on certain types of loans. A loan agreement with an interest rate in excess of the legal maximum rate is not a legal contract because the subject matter is not legal. There must be a mutual agreement – The parties to a contract must mutually agree to the terms of the contract. Mutual agreement is evidenced by an offer and an acceptance of the offer. The lack of mutual agreement will render the contract
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BUSINESS LAW I UNIT 5 - UNIT 5 DEFINITIONS BUSINESS LAW I...

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