Elements of Contract Law- A review of scenarios
QUESTIONS/SCENARIOS
- An oral agreement is considered as a contract and it is similar to any written agreement. It is enforceable by law in Canada because the contract is valid. However, in order to sue someone for breach of oral contract, the other party should provide legal evidence or any proof in front of the Court. Sally promised Lisa to pay $500/month in order to support her financially as she was worried about the medical school expenses. The agreement might be considered as a casual one because both the parties do not have any evidence of the agreement. Therefore, if Lisa wishes to sue Sally, the appeal might get rejected in the court. It would have been beneficial for Lisa if she could have recorded their conversation. The contract could have been considered as legally binding if it met any of the criterions of contract law. Lisa might not receive justice as she lacks evidence.
- Consideration is one of the key elements of the Contract Law, and it ensures that both the parties entering into the contract have bargained with each other on a common theme. One consideration can be exchanged for a different consideration of the same value. The only criteria are that both the parties must give their mutual consent. In the case of Joe and Bill, it is observed that both of them mutually agreed to pay Susan an amount of $75. Again, both of them mutually agreed to abandon the stated agreement. Susan was not involved previously, and she does not possess the right to have a say in this case. Bill and Joe are bound by law; however, Susan was at the receiving end. Therefore, despite suffering loss, she cannot sue them as both of them mutually decided to abandon the contract. Moreover, both Joe and Bill voluntary made the promise.
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- In order to ensure a contract as “valid,” certain elements must be satisfied. A contract would then be considered a legally binding contract. The elements are Offer, Acceptance, Consideration, Competency and Mutuality. The offer involves either an exchange of service or good or something valuable. Usually, in exchange for money, one party offers a service to another party. Acceptance is a stage in which the other party accepts the offer by understanding terms and conditions. Consideration involves agreeing to “something of value.” It can be money or any other valuable service. Competency means that parties possess the legal capacity, and they are mentally sound at the time of contract formation. Mutuality means intent or willingness to perform the duties and obligations. For example, Jason agreed to pay $250 to David in exchange for an antique. Both of them entered into the contract after signing the document. They were mentally sound and had the intent to oblige with the legal contract.
- It would be possible to recover the financial damages of an equal sum because I have entered into an agreement with the local merchants. Since I have already paid for the phones and have not received the value for it, it is possible to sue the merchants for the breach of contract. It falls under the “Award of Damages” category of Contract Law, where the injured party would be compensated. In case, if I try to deliver the inauthentic phones to the customers and they refuse to pay for it, it would not be possible for the Court to force them because I have not delivered the service of the same value. It violates the “Consideration” element of the Contract Law. Rather, the customers have the right to sue me for violating the contract. The “Award of Damages” is not applicable because the case of customers is different from the case of merchants.
References
Canadian Contract Law.. (2020). Canadianlawsite.ca. Retrieved 23 February 2020, from http://www.canadianlawsite.ca/contracts.htm
Chalkidis, I., Androutsopoulos, I., & Michos, A. (2017, June). Extracting contract elements. In Proceedings of the 16th edition of the International Conference on Articial Intelligence and Law (pp. 19-28).