timer Asked: Apr 9th, 2020

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5-10 pages

related it to business law and make sure its in formal style.

I will attach the report of friend, it is only an example as her topic is different.

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Content page Contract defined The essential features of a valid contract consists of Types of contracts: 3 3 3 Offer and Acceptance: Termination of an Offer Acceptance of offer 4 4 4 Consideration Types of consideration: Rules governing consideration 5 5 5 Capacity of minors to make contracts Contracts made by minors divisions 6 6 Terms of a contract Terms vs. Representations Summary of statements in contract law How terms are incorporated into a contract 6 7 7 7 References 8 Contract defined A contract in simple words is a legally binding agreement between two or more parties or an agreement that creates certain legal obligations between two private parties, it can come in two forms, oral and written contracts. However, oral contracts are more challenging and are preferred to be avoided if possible while for other contracts, they must be written down, such as contracts involving a large sum of money (over $500). Contracts are a part of everyday dealings. Hence, to ensure you have a legitimate contract, it is important to recognize the laws governing them.​​(LaMance, 2020) On top of this, courts will not carry out certain contracts unless they are in writing. These contracts are protected by the Fraud Statute, and must be in writing. This includes marriage contracts, contracts not to be fulfilled within one year, interest in land contracts, payment of debt guarantees for the decedent, and selling of contracts for goods for a certain sum. ● The essential features of a valid contract consists of Offer + Acceptance + Intention + Consideration = A legally binding Contract 1. Offer:​I will pay you 5 OMR for 5 books. 2. Acceptance of the offer:​other party accepts the 5 OMR in exchange for the product. 3. Intention:​they are the terms and conditions for the performance (The books must be in english and 15 pages); As for performance (The 5 books are delivered and the person is paid 5 OMR). 4. Consideration:​​A valuable consideration (5 OMR). 5. A time or an event ​of when the performance must be made is also part of a contract. ● Types of contracts: 1. Speciality contract a. Agreements which must be created in the form of a deed b. Agreements which must be made in writing c. Agreements which need only to be evidenced in writing 2. Simple contract Offer and Acceptance: As contracts start with an Offer, it’s very important to know the difference between an Offer and an Invitation to treat, an ​offer can be defined as proposing a set of terms with a promise to be bound by the stated terms only if the proposal was accepted. An invitation to treat (invitation to negotiate) can be defined in different ways, ​An invitation for a potential customer to accept an offer; An acceptance of an offer; A legally binding offer; An invitation for a potential customer to make an offer. ● Termination of an Offer The completion of an Offer happens by either acceptance or other status that leads to terminating the offer for a contract​. These may include either the offeror's actions, the offeree's actions, or other circumstances that interfere causing to Termination, such as: 1. Rejection/ Revocation:​Normally the offeror has to express specifically the decision to refuse the offer to the offeror. Rejection or revocation of an offer usually takes place when the offeree is aware of it. 2. Lapse of Time:​Typically, the offeree has a "fair period of time" to respond to the offer after learning of it. The period of time can vary depending on the subject-matter of the contract as well as the parties 'previous dealings. 3. Death/Incapacity/Disability of the other Party: ​If the offeror has been deceased, disabled or incapacitated before the offer of a contract is accepted, the offer will typically be terminated. 4. Conditional Acceptance:​If the offeror makes a conditional acceptance ( "I will accept this deal only if I can also get a free product"), this is not seen as approval of the bid, but instead as a counter-offer. 5. Illegality:​If the performance of the contract is unlawful/ illegal after the offer has been made, the bid ends and the offeror can no longer accept the offer legally. ● Acceptance of offer The offeree must show willingness to be subject to the terms of the offer such as making payment or signing an agreement to accept the offer.​​(Wallace, 2018) Consideration The basic formation of a contract involves one party, the offeror, to make an offer, and the offerer, a second party, to accept the offer; after that, both must exchange what is called consideration. An offer can be made to a single individual, organization or general public. Consideration is an essential element to show agreement should be legally binding, it was first defined in the​19​th century in terms of ​benefit​and ​detriment​. It is also prescribed as “ the bargain, each party gives value to the other either by exchanging promises or by a promise given in exchange for an act.” ​(LLC, 2014) ● Types of consideration: 1. Executed consideration​: One party promises to do something in return for the act of another. 2. Executory consideration​ :​Both parties promise to do something in the future. ● Rules governing consideration 1. Consideration must not be past. - Exceptions to this rule: If the act was done in response to a request; 2. Consideration must be sufficient but need not be adequate Sufficient: must be real, tangible and have some recognisable value. Adequate: must be of roughly equal value to the other parties consideration. 3. Performing an existing duty cannot be a good consideration. - Exceptions to this rule: Unless the party promises to exceed their existing duty. - Unless defendant would receive some extra benefit: 4. Part payment of a debt (rule from Pinnel’s case (1602)), Agreement to accept lower sum is not binding unless supported by fresh consideration. - Exceptions to this rule under principle of accord and satisfaction: - Agreeing to accept a lesser sum paid earlier. - Agreeing to accept something other than money. - Agreeing to pay in a different way. - Promissory Estoppel. Capacity of minors to make contracts Minors are defined as anyone under the age of 18. Generally, minors are not bound by contracts, although the person contracting with them will be. Special rules apply to them that are designed to protect them from being exploited or manipulated by businesses. “ If a minor wants to enforce his contractual rights against a business, he will normally be allowed to so and the courts will treat the contract as valid.”​​(Rush & Ottley, 2009)​. ● Contracts made by minors divisions 1. Valid - For necessary goods and services (Depends on background and circumstances of the individual) - For beneficial employment contracts (To be valid, must benefit the minor overall, even if some clauses do not. If contracts of service are not beneficial, then they are voidable) 2. Voidable - Contracts which impose a continuing liability (Contracts which impose a continuing liability are voidable. Minor must avoid the contract before or within a reasonable time of reaching 18) 3. Unenforceable - For loans - For non-necessary goods and services (Minors are not bound by contracts for unnecessary goods or services, or loans) Terms of a contract Terms are one of the statements that are made prior to the contract, they may be conditions, warranties or innominate terms. “ A statement made in the course of negotiations may become a term if the parties intend it to be a term.” ​(Davies & Smith, 2018)​.​The terms of a contract can be incorporated by a signature. It is very important to understand how the terms of a contract are identified before discussing how they are understood. ● Terms vs. Representations Another statement made prior to a contract are representations, it is necessary to be able to distinguish between representations and terms as they are quite similar to each other in some way. A representation is a statement of fact that does not contribute to a contract term but is one that the declaration's maker does not guarantee its validity. It does not give rise to a contractual obligation but does amount to a misrepresentation. ​(2015) ● Summary of statements in contract law ● How terms are incorporated into a contract 1. Express terms: terms contained within the offer, which become part of the contract once accepted; 2. Implied terms - Implied by the courts - Implied by custom - Implied by statute References 1. Clarke, P. (2018, June 17). Offer Termination in Contracts. Retrieved from ts.html 2. Davies, P. S., & Smith, J. C. (2018). ​Jc Smiths the law of contract​. Oxford, United Kingdom: Oxford University Press. 3. LaMance, K. (2020, February 3). What is a Contract? Retrieved from 4. LLC, S. P. E. E. D. Y. P. U. B. L. I. S. H. I. N. G. (2014). ​Contract law terminology and definitions (speedy study guide).​ Place of publication not identified: SPEEDY Publishing LLC. 5. Rush, J., & Ottley, M. (2009). ​Business Law​. New York: Cengage Learning EMEA. 6. Wallace, L. (2018, July 25). Offer and Acceptance in a Contract. Retrieved from ml 7. What is the difference between a contract term and a representation? (2015, September 3). Retrieved from epresentation ...
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