Just not understanding

Law
Tutor: None Selected Time limit: 1 Day

Discuss what makes contracts difficult to read or comprehend. Next, identify and then explain the two most important elements of a contract that every manager should know about.

Feb 5th, 2015

Discuss what makes contracts difficult to read or comprehend.

The first one, I think because they're long and don't just cut to the chase. Contracts have to be sure they don't miss a single detail. If they forget to add just one thing, it can be held against them in a court of law most of the time. Along with the fact that it's normally printed in small font that is hard to read and you get lost reading the lines most of the time anyways. And there are some big words they use that not everyone understands. 

Next, identify and then explain the two most important elements of a contract that every manager should know about.

1. Intention of legal consequences

A contract requires that the parties intend to enter into a legally binding agreement. That is, the parties entering into the contract must intend to create legal relations and must understand that the agreement can be enforced by law.

The intention to create legal relations is presumed, so the contract doesn't have to expressly state that you understand and intend legal consequences to follow.

2. Consideration

In order for a contract to be binding it must be supported by valuable consideration. That is to say, one party promises to do something in return for a promise from the other party to provide a benefit of value (the consideration)



Feb 5th, 2015

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