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.
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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