Contracts Assignment 1

Contracts Assignment 1

Memorandum

From: Bernie

Date: January 29, 2013

Issue

The issue in this case is that a breach of the contract has been made. The contract was signed by both the parties in complete understanding but still one party failed to fulfill their promise and the breach of the contract was made. However, the party that breached the contract has sued for their money claiming that there was no mutuality of consideration for the agreement and that the contract was therefore void.

Rule

When two or more parties agree to an agreement with an intention of creating an obligation that is legal, is known as a contract. If the contractual promise is 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 honored the promise either by no-performance or interference. Vivian has sued Bernie claiming that there was no mutuality of consideration in the contract (Blum, 2007). The mutuality of consideration doctrine is the closely related to the mutuality obligations. Under this doctrine, both the parties of the doctrine are bounded to fulfill and perform their promises otherwise the law will treat the contract agreement as if none of the parties are bounded to fulfill their promises.

In this law, when the offeror and the offeree exchanges their obligations and promises to perform a certain task, merely one party is not given the unlimited and absolute right for canceling the contract. Such arrangements attempt to allow one party to perform at her leisure, while ostensibly not relieving the other party of his obligations to perform. Majority of the courts declare such promises as one sided on the basis of the lack of mutuality of consideration in the contract. Some of the courts merely considers ...