BUSINESS LAW CONTRACT

Business Law Contract

Business Law Contract

A contract is one of the basic social and legal institutions in modern society. A contract frames and coordinates human interactions. It is an agreement that creates, assigns, delegates, and transfers rights and obligations, tangible and intangible goods, services, and entitlements between the contracting parties, relying on their voluntary, rational, and deliberate consent. Today, contractual relationships among persons, communities, organizations, and states emerge as an alternative or at least as an amendatory legal instrument of market coordination and state regulation. A contract binds person to person, person to organization, organization to organization, person to society, person to state, and state to state in private, social, economic, and political affairs.

Since contracts embrace almost all aspects of human affairs from business to marriage, it is difficult to develop a general theory of contract that could provide a normative framework for all human interactions based on various macro- and micro-level, formal and informal, and written and unwritten agreements. Since the theoretical diversities of the notion of contract are rooted in different legal and philosophical traditions, they offer different accounts of its philosophical origin, moral motivations, and practical justification for its prevalence in modern society. Conflicting assessments cause theoretical, doctrinal, and practical tensions and incoherencies in contract law, adjudication, and contractual settlement. Therefore, despite the long and rich intellectual history of philosophical, moral, legal, economic, and political reflections on contract, many contemporary scholars hold that contracts still lack any clear and consistent theoretical foundation. The critical remarks about differing assumptions and interpretations apply equally in civil law countries, where contracts are often justified on moral grounds and given a certain kind of redemptive power in the implementation of a just and well-ordered society, and in commonlaw countries, where the economic analysis of contracts seems to be too narrow in its philosophical and moral foundation.

Generally, a definite and unconditional repudiation of a contract by a Cassie, communicated to the other, is a breach of contract, creating an immediate cause of action in a court of law. This is so even if it takes place long before the time prescribed for the promised performance; further, before conditions specified in the promise have even occurred. Ironically, contract repudiation should be encouraged where the promisor is able to profit from his default, so long as he or she places the promisee in as good a position as the promisee would have been in had performance been rendered. Typically, a breach of contract entitles the other Cassie to compensation for the loss sustained as a consequence of the breach. But with the exceptions and subject to express contractual rights of determination, a breach of contract by one Cassie does not discharge the other Cassie from performance of his or her unperformed obligations. Otherwise stated, repudiation by one Cassie standing alone does not terminate the contract. It takes two to end it: Repudiation on one end, and acceptance of repudiation on the other.

There are, however, two circumstances where a breach of contract by one Jasper ...