Contract and breach of Contract

Contract and breach of Contract:

Contract

Contract is an agreement between two parties on certain terms. The agreement may be written or oral but the parties are meant to agree to certain clear terms that will be legally enforceable between them. Contract runs to cover the agreement between offeror and the Offeree and this stand to mean that one of the parties will make offer of a certain agreement while the other party will decide to accept the said offer or to reject it.

If the party to which the contract was offered rejected it, that will bring to an end such contract but if he forges ahead to accept it that will now lead the both parties to keep their different sides of the agreement. Contract is usually meant to be solidify by a consideration. While a consideration can either be in monetary form or any other form that can be assume in law to provide sufficient legal value for the thing offered.

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It is an elementary knowledge that the parties involved in such legal agreement will also be expected to have the intention of entering legal relationship. This is the part that will make their agreement legally enforceable in the contract.

However, such contract can also be subverted by many other things which the parties may or may not have hands on. Meanwhile, if such act is by the act of the parties, then the party that breached the contract may be sued for the enforcement of the contract but if such subversion was a result of the Act of the God then it will be abandoned and non of the parties will be sued for it.

It is also a notorious principle under contract that the terms of the contract are only binding on the parties that entered such agreement except if the parties agree otherwise or the law provides so.

Parties to Contract

  1. Offeror: The party that makes the offer for the contract. He is the party that comes up with the term of the contract. The duty of this party is to make the offer for the contract and accept consideration from the Offeree.
  2. Offeree: This is the party to whom the offer was made. He may either accept the offer or reject same. The rule is that if he makes a little acceptance that varies from the one made by the offeror, the offeror will not be bound to accept it. (That’s what they called Counter offer). The duty of this party is to accept the offer and pay for it.

Elements of Contract

  1. Offer
  2. Acceptance
  3. Consideration
  4. Intention to enter Legal Relationship

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Breach of Contract

Breach of Contract is a process whereby either of the parties in the contract fails to keep his or her own side of the contract. The ideal thing in a contract is that the parties will agree on the terms of the contract and parties will be expected to keep their various side of the terms and failure to do that may give rise to a civil suit for the enforcement of such a contract or for breach of the contract. A party in the contract that has fulfilled his part of his contract may sue the other party who fails to fulfil or carry out his own part of the contract provided the parties have legal the intention for legal relationship.

The offeror can be in the breached of the terms of the contract. The Offeree can also be in the breached of the contract. So, this entails that the breach of the contract can sprung up from either of the parties.

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