Corporate Law Assignment Law of Contract - 1375 Words

Corporate Law Assignment: Law of Contract (Coursework Sample) Content: Corporate Law Assignment: Law of ContractStudents NameInstitutional AffiliationIntroduction Contract law can be described as the law between two or more parties which includes all the issues they are supposed to have agreed upon. What does not appear on the face of the contract should be regarded merely as a dealers or traders talk which cannot bind either party. The following discussion will highlight two issues under contract law that is; elements and the remedies available to the aggrieved party if the contract is breached. Elements of a ContractA contract is a relationship of agreement that two or more people create either oral or written, that contains a promise from one to do something for the other and it is recognized by law. The most important factor of a contract is that the relationship is that it should be voluntary for all parties involved. Therefore, a contract will only be formed if both parties are acting on their free will and want to enter into the contract. Nevertheless, the parties will have to come to an agreement on the terms of their contract. The element of agreement is what makes a contractual obligation to be separated from the other kinds of legal duty that arise with the operation of law. As much as the agreement between the two parties is essential, the law does not require the agreement between the two parties as long as subjectively they are in accord. The exchange between the parties is enough for one to conclude that both parties have reached an agreement.A contract is like a private law that two people create with their terms that guide the relationship. However, the contract must have legal properties for it to be recognized by law and enforceable by courts. They voluntary entered the transaction because they desired its benefits and could meet the stipulated conditions andTo be considered legally valid, there are some certain requirements that a contact must meet. These are; offer, acceptance, consideratio n, contractual intention and form. Offer and acceptanceAn offer must be made by a person to be accepted by the other party. The person making the offer called the offeror and the one accepting the contract is called the offeree. Offer and acceptance stipulate the meeting of the two parties with an agreement into entering into a contract. By accepting to keep the promise the offeree is bound by the terms of the contract. This was held in the case where the student was admitted wrongly through a clerical error of the school.Consideration Consideration is another element for a contract to be considered valid. Consideration is the legal value that is attached to what one party is offering and accepted by the other. In a contract it can be in the form of a statement that indicates the exact value of the promise made by the parties. Contractual intention The contractual agreement between the two parties should be between people of legal age with the mental capacity to understand the im plications of entering into a contract. The legal age for a party to be considered an adult is 18 years. The parties to a contract must have entered the contract at their free will and not under duress or influence. FormContracts can be made either orally or in writing so long as there is an exchange between the parties with an aim of entering into a contract. Therefore, an informal meeting with a promise of a contract can be enforced as legally binding. Although there are exceptions to this rule; according to the Law of Property Act; a property lease for the duration of more than three years must have a deed. Another exception is stipulated that contracts of sale of land must be made in writing.Remedies Available for a Breach of ContractIn most cases, parties to contracts perform because they want to. They voluntary entered the transaction because they desired its benefits and could meet the stipulated conditions and nothing have happened or would happen to change this. Even in cases where the exchange has become less desirable or more burdensome, a party may still make the effort to perform as promised out of a sense of moral duty or because it values its reputation for reliability of the goodwill of the other party. Sometimes the power of legal enforcement has an indirect influence in deterring breach because a reluctant party knows that failure of performance could result into litigation. However, in those cases in of a broken promise, the aggrieved party has the legal power to sue. A court has the role to review the contract and resolve all the disputes that lead to its breach. Once it has satisfied that a valid contract was entered and breached it will give remedy to the aggrieved party. This leads to a very important and persuasive issue in contract law on the determination of what remedy is available to a victim of a breach. In most contracts the obvious form of remedy may be to for the courts to impose on the party that breached to honor the con tract. However, it is a firm principle of contract law that enforcement of the promise is not the primary remedy .Rather; it is a judgment awarding compensatory damages to the disappointed party. Although, the party that was disappointed must prove that the breach of the contract caused them financial loss. There are various remedies available to an aggrieved party are; special performance, enforcement, and damages. Enforcement and special performance are alternate remedies while damages can follow enforcement and termination and could be granted independently. However following the law of remedy the injured party will have the choice to decide the remedy they would prefer to pursue . The special performance is a judicial order to the defendant that he must undertake the performance to which he has been obligated himself in the contract. Special damages are issued at the discretion of the courts. In the end, damages are the main remedy available for a breach of the contract and the aggrieved party is always compensated the value of what they have lost. However, the plaintiff who is the aggrieved party must prove beyond reasonable doubt that the loss he has suffered had been caused by the breach of the contract. It is vital for a chain of cause to be linked to the breach of the contract and the loss incurred. If something else that is not within the contract or the control of the parties then it will be said that the breach caused the loss. The remedy awarded to the plaintiff is not a punishment to the defender, or a means to intimidate or create fear so that they can honor their end of the contract....