CONTRACT

Applying The Elements Of A Contract In Business Situations



Applying The Elements Of A Contract In Business Situations

Introduction

In business dealings as well as in day-to-day matters, the contracts and dealings play important role in the fulfillment of responsibilities and legal duties. In the business world, all the matters are concerned with the contract and the fulfillment of contract's obligations. In business operation, activities are varied according to different operating procedures and these varied operations involve many contract agreements. The business contracts involve the terms and conditions that are related to the transactions and that are occurred in day-to-day business operations. The business contract helps the parties that are involved in business dealings, in avoiding the conflicts that may arise due to the misunderstandings of the dealings. The contracts help the parties in fulfilling their duties according to the law and regulations that are developed under the corporate (Miller, 2012, pp.116).

There are many aspects of contracts that are over looked by most of the business companies. The negligence of business organizations in dealing with various matters of contracts can give the organizations with great serious costs (Klass, 2010, pp. 221). Many times the negligence in any of the aspect of contracts can lead the companies into serious legal issues (Giles, 2004, pp.851).

Discussion

Elements of contracts

For a valid contract there are certain essential elements that are necessarily present in all the types of the contracts. These elements involve the legal parties, offer, negotiation, acceptance, provision of service, and the legal payment terms. It is also the essential element of contract that the promised offer must be carried out efficiently and effectively.

For every contract there are certain essential elements. The contract, to be legal and viable, must possess the following major elements. Without the fulfillment of essential elements, the contract agreements can be enforced as legally binding. These essential contractual elements involve:

Offer and its implication in business situations

An offer is the first and essential part of the contract. The party or person that sales the product or service is known as the offered and the party or person that receives or accepts the offer and promises to pay is called the offered. In making the contract agreements, the parties have the liability to make the contract agreements clear and well stated (Miller, 2012, pp.274). The terms, conditions and proposals made in the offers must be clear to all the parties involved.

Invitation to treat and its implication in business situations

Another element in the contract procedures is the invitation to treat that involves the concerns of both the parties in making the contract. Negotiation is an important aspect in making the contract invitation (Giles, 2004, pp. 754). An agreement is not considered as accepted until and unless the invitation to treat is not finalized. In business contracts, some of modes of the invitation to treat involve announcement, pricing lists, memorandums and catalogues etc (Gittman & McDaniel, 2008, pp. 235).

Acceptance and its implication in business situations

The third element of the contract is ...