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Forming A Contract



Making decisions in management can be difficult. As
a manager over a local restaurant a person has management above and below them,
not to mention the crew. When a manager makes a decision he has to make the
decision that best benefits the restaurant. What affects the higher management?

Contracts

The Difference between Express
Contracts and Implied Contracts

Let us go over two different but similar contracts.
An express contract is an agreement based on the parties. An implied contract
is inferred from the facts and circumstances of the case or the conduct of the
parties. When is the best time for each of these contracts?

Express Contracts

Express contracts are meant for when two people
come to an agreement. For instance when John wants of work and Bob says he will
cover his day if he buys him dinner after work. They agree they are now under
an express contract. This is made in minutes. Express contracts can be made
every day. They are made in our average everyday life to make an agreement to
achieve in life.

A common law in express contracts is an acceptance
must be unequivocal. (Kinsellagh, 2013) That means that Bob cannot agree to
cover John’s day for a new car. That is just unrealistic. If this agreement was
made then it can become null and void. Bob can say that this is unrealistic and
just void the contract or suggest to John to renegotiate the contract. When
they reach a more realistic contract then they can move forward, if they do not
then it will be voided.

Implied Contracts

Implied contracts are based on facts and
circumstances. An example for implied contracts is a landlord offering a
discount on rent if the tenant mows the lawn. The landlord offers $100 a month
off of rent if the tenant mows their own lawn and their neighbor’s lawn next
door. The tenant finds out that they can be paid more for mowing and getting
paid for by the customers so they no longer do it for the landlord. In this
event the landlord will be able to charge for full rent because of a breach of
contract.

 

 The Difference
between Bilateral Contract and Unilateral Contract

There
is a small difference between bilateral and unilateral contracts, by small I am
talking about numbers. The prefix “bi-” a combining form meaning “twice,” “two”
used in the formation of compound words.  The prefix “uni-” a combining form meaning
consisting of, relating to, or having only one. So there is only a difference
of one between the contracts. What are these contracts?

 

Bilateral Contract

A
bilateral contract is one in which a promise is exchanged for a promise.
Exchanging a promise for a promise is important in someone’s personal life and
in business. This is important because it is not only legal but it builds a
person’s and business’s reputation.

When
hotel is building a parking garage and needs to build over an ally that a local
restaurant uses and they make a contract that if they can build over the ally
then they would get more business. Well the hotel changes plans by directing
traffic in a different direction that takes them away from the restaurant, and
does not renegotiate with the restaurant then this is a breach in a bilateral
contract.  

Unilateral Contract

A
unilateral contract is one in which there is a promise to pay or give other
consideration in return for actual performance. The main thought on a unilateral
contract is everyday contractures. The plumbers, construction workers, anyone
we pay for the job they did that day. This is a unilateral contract. We are
paying them to do their job, if they fail at performing we would be able to get
them to redo what we already paid them for or take them to court and sue them
for breach of contract.

The
Difference between Voidable and Void

Something
which is voidable is subject to becoming void. Void means something which is
invalid and of no effect. A law that is found unconstitutional is considered
void, and a marriage which has been annulled by court judgment is void. 

Voidable

If
a contract contained a representation which was fraudulent, and which misled
the party to whom it was made, the contract would be voidable. If the contract
misleads the party who signs the contract then the contract is considered to be
misleading. In this case the Judge will make the contract null and void and may
even renegotiate a new simple contract in court in necessary at the time. In
that case the Judge will encourage them to renegotiate the contract and make it
simple legal terms.

Voided

Void
means something which is invalid and of no effect.  When a Judge does get toss out a contract it
has just been voided. Up until the point that the plaintiff and defendant came
to court and the Judge made a judgment it has been considered voidable after
the Judge makes their call of being null and void, it is voided.

Formation of a
Contract

There are four
essential elements of a contract. The four essential elements are offer,
acceptance, intention of illegal consequences, and consideration. Let’s go over
each of these since they are essential. (Small Business Development Corporation, 2012)

Offer

There must be a
definite, clearly stated offer to do something .Offers needs to be clearly
stated in a contract. When it comes to contractors or sub-contractors an offer
needs to be made for them to enter the agreement. The first sub-contract I am
thinking of is delivering newspapers. The reason for this is because I have
done this before and I had to sign a contract. It was in the agreement though
that we could form a sub-contract with a friend or family of ours to have the
newspaper delivered and I would be responsible for paying them for delivering
the newspaper.

Acceptance

Only what is offered
can be accepted. When a contract is offered it needs to be accepted. Once the
parties agree on the terms of the contract, written or verbal, it has been
accepted. The offer needs to be accepted without conditions as well.

Intention of
Illegal 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 contract does
not need to state about the legal relations because it is presumed. If they do
not intend legal relations then, in this case, it needs to be made clear.

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). This is the end of this
contract, it is pay time. At this point a promise needs paid for. The payment
needs to be fair to the payee but does not need to look fair to the average
person. For example if it cost a person $100 to get their lawn mowed and a
walker coming down the street offered to mow the lawn for some grilled hamburgers.
Well the person whom is receiving the lawn mowed is gaining cause he doesn’t
lose anything maybe a couple burgers and chips. The mower just wants dinner
with his neighbor so this is a higher value to him. Three examples of
valid consideration are payment of money, promise not to do something, or
refrain from exercising some right. Some examples to these considerations are
paying money to a contractor, promising not to call police when a person whom
is being evicted comes and claims their property, or agreeing not to file a law
suit.

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Categories: Difficulties in lifeTags: , , , , ,
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