CONTRACT LAW

Contract Law

Contract Law

Introduction

When studying Common Legal Code, contracts can be described as legal agreements that have a legal object and that two or more parties enter into voluntarily (Dimatteo, 2013). In a contract, the parties involved create legal obligations between each of them. Two of the principle elements of a contract are 'offer' and 'acceptance' (Dimatteo, 2013). Several legal rules dictate the offer and acceptance of a contract and, if not followed, the contract is deemed void by the law and can be terminated.

Discussion

In order to understand and assess the three legal scenarios faced by Billy and Jimmy, it is essential to first develop an understanding of a legal contract (D'agostino, 2008). In a contract, the elements of offer and acceptance are only deemed valid if the two parties involved are competent persons who have the legal capacity to do so and who exchange consideration to create a mutuality of obligation (Dimatteo, 2013). Proof of offer and acceptance of a contract is ideally done in writing. However, a contract can also be made through conduct or orally. In case the contract is breached, the remedy is damages which commonly involve monetary compensation.

However, the party claiming the damages can also enforce specific performance with the help of an injunction. In both the remedies, the benefit of the bargain goes to the party that has suffered a loss as a result of a breach of the contract (D'agostino, 2008). The benefit of the bargain may involve promissory estoppels, reliance damages, or expectation damages. To form a contract, it is imperative that the involved parties reach an understanding that is mutual. If a purported agreement is made but does not modify the terms and conditions of the original agreement, it is not an acceptance but a counteroffer (D'agostino, 2008). It is also a ...