Elements of a Contract



Elements of a Contract

Introduction

When two or more parties agree to an agreement with an intention of creating an obligation that is legal, is known as a contract. It is a promise that is enforced legally by one party to another. The agreement binds the parties to be concerned about the bargain which is commercial and involves the hiring as well as sale of commodities (Brownsword, 2009). The breach of contract is recognized by the law and legal remedies can be made. This paper will discuss and explain the non-compete/non-competition contract. Furthermore, its validity and the circumstances in which the contract is unenforceable have also been discussed in this paper.

Case Overview

The Fabulous Hotel had hired me as head chef under a two year employment contract. After the end of my two year contract, another hotel wants to hire me. However, in the original employment contract which I signed in with the Fabulous Hotel, there was one paragraph mentioned which stated that I will not work as a chef for another hotel which is in the same metropolitan area for a two year duration after leaving Fabulous Hotel.

Elements of the Contract

A contract can be defined as a legal act by which the contracting parties establish their respective rights and obligations on what they want to accomplish. A contract in order to be valid must have the basic essential elements. Every contract cannot be enforced by the court for the enforcement of promises, or an agreement court observes some elements. Court will prove that agreement as a contract after having a check on these elements. 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. One is consideration another is terms of the contract (Blum, 2007).

The game of clause causes the employee's obligation to comply with a prohibition of work for a certain period after the expiry of his contract of employment in a specific industry in a precisely defined geographical area or still a number of competitors of his former employer (Helewitz, 2010). The contract should therefore describe in detail what to build, and how they will pay for the buildings. For this, the contract must include the following essential elements:

Offer

It is the compromise document, signed by a party and accepted in writing by the other party, which sets the price offered and the time given for completion of work, subject to the conditions specified in the contract.

Acceptance

It is the document signed by both parties be bound by the terms set out in the documents described above are summarized (Klarfeld, 2003).

Legal Consideration

It is appropriate that part of the contract the entire project, because if it is a good project, it includes not only the description and detailed graphics of each and every one of the work to be ...