CONTRACT LAW

Contract Law

[Name of the Institute]

Contract Law

Introduction

The law of contract which we are going to analyze here is the enforcement of promises. Every contract is not enforced by the court. For the enforcement, of promises, or an agreement court observe some elements. After having a check on these elements, court will prove that agreement as a contract. The contract involves a process of certain elements. The process starts from an offer. For the formation of the contract the offer must be accepted, unconditionally. There are certain more requirements for the offer and acceptance. After the communication of acceptance, law needs two other elements, as well. One is consideration another is terms of the contract.

Meaning of Contract

Contract is known as the promise or set of promises enforced by the law. For a valid contract, there should be two or more different parties must be involved. The parties should have to be certain consensus on matters. They should be ready to create legal relations for their promises as they are contractual promises in contract. The promises must be supported by consideration. The contract does not have promises all the time which are bare but it also have some bargain in it (Furmston, 2007, Pp.100-150). The requirement of two or more parties in a contract is the first, essential thing for the contract that is why the arrangement between 2 departments or faculties of the same organization or company is not a contract because a person is not being allowed to make a contract with himself. However, it may also depends upon the capacity if the different individuals or parties. The companies, which have separate legal personalities involved, can have contract where they act in as independent legal entities.

Breach of Business Contract

If the contractual promise not fulfilled by any one of the parties, it results in breach of contract in business. This is a legal cause of action that means that a party has not honoured the promise either by no-performance or interference. The breach can vary in different situations, and some of the names given to breach of contract in business are mentioned below.

Minor breach - In this case, the non-breaching business party is only responsible for charging the other party with damages but it cannot sue it.

Material breach - This happens when any party is unable to perform because of which damages occur. This takes place because of economic waste or pricing.

Fundamental breach - This provides permission to the party to terminate the contract also to sue the other party for damages.

Anticipatory breach - This occurs when the other party does not perform when expected. Therefore, the other party can ask for damages and sue the other party (Treitel, 2007, Pp.59-95).

Limitations on Damages

The judicial remedy for breach of contract in business is mainly the monetary damages that incur. Therefore, if any party fails to fulfil the promise and money cannot serve the damages, the business needs to approach the court and enter an equity decree after which the court announces the ...