CONTRACT LAW : TRUST, PROMISES, AND CONTRACTS
The contract is a part of Everybody’s life from collaboration, promise, and trust. But as a matter of fact, it’s every day and I can say how many times but let us take an example: You go to a parking garage; he gives you a stab now that is also a contract.
Communication, Agreement, Understanding, and Trust: You can get coordination only through communication. Coordination depends upon a number of things like communication, trust, and agreement.
Table of Contents
What is trust:
There is no such definition of trust, even the jurists have not been able to define the definition and left the definition incomplete.
Example: A transfers his property to B for the ‘use’ of and in trust of X. A is the owner of the property, X is the beneficiary and B is a trustee in whom confidence by the owner of the property is reposed.
What is a promise?
A promise made by one person to another to perform or do something for the benefit of the other person. A covenant is created when a promise is reduced to the form of a written agreement under seal. So, promises are commitments, ways for people to make sure that the trust they put in each other will justify the sacrifices they make so that altogether we all can make progress. Now, this is trust. Trust, is engendered among other things, by promises, and on the other hand, trust is engendered by affection, family by habit
Note: Not every promise will lead to a contract.
Think this question: Have you recently made a promise that you don’t expect the government to keep? Was it the intention to establish legal ties? Or was there a lack of intent?
Example: Albert, a fourth-grader, enjoys video games far more than he enjoys learning, to the point where he usually receives a 20 percent on his homework projects. Albert’s mother expresses her concern and tells him that he needs to work more in school. She bribes him by promising to prepare Albert whatever he wants for dinner on Friday night if he completes all of his homework assignments for the week with a perfect score. Albert returns home from school on a Friday afternoon, happily showing his mother his final homework assignment, which has yet another 100 percent inscribed at the top. After that, he demands a seven-course steak supper.
What is the promise done by her mother?
We already know that courts will refuse to enforce a contract if its purpose is to bring about an illegal or immoral end.
Promise to make a gift? A gift is an unrequited transfer of property from one person to another without the promise of something of value in return. Because there is no consideration for the commitment, failure to follow through on a promise to make a gift is not enforceable as a breach of contract. ”A gift is an uncompensated transfer of personal property made voluntarily.”
What is an offer or proposal?
- Intention to create a legal relationship
- Offer must be communicated
- The terms of the contract must be definite
- Must be distinguished from Invitation to offer
What is Acceptance?
- Must be absolute and unqualified
- Must be expressed in the usual manner
- Mere silence is no acceptance
- Must be communicated
- In a manner prescribed by an offeror.
What is Consideration?
- Must move at the desire of the promisor
- It can act, abstinence or promise
- Performance of an existing legal duty is no consideration
One-sided Contract: A contract in which just one party makes an express pledge or performs a task without first obtaining reciprocal consent from the other.
Mind Quiz: Do you think it is fair that the law will not enforce a promise where one of the parties disproportionately gains at the expense of the other?
- Yes
- No
Example: CONTRACT FOR THE HOLDING OF AN OPEN OFFER FOR THE SALE OF A CAR
This CONTRACT TO HOLD OPEN OFFER FOR SALE OF CAR
(“Agreement”) is made by and between Frank Car seller (“Seller”) and Lisa Needs car (“Buyer”) on this 13th day of June. For a period of 100 days following the signing of this Agreement, Seller agrees to hold open his offer to Buyer to acquire Seller’s 2009 Jeep for $5,000. If Buyer chooses to accept this offer, she shall immediately notify Seller to arrange payment.
Signed,
Lisa Needs car
Frank Car seller
Yes, the above contract is enforceable:
- Yes
- No
- If not why reason it out.
What is the difference between a contract and an agreement?
- The contract is enforceable by law on the other hand agreement may or may not be enforceable by law
- All contracts are agreements but an agreement may or may not be an agreement
- In the contract there is a legal obligation in Agreement there is no such legal obligation
Note: Obligations are of different types like Penal, absolute, express moral contractual and conditional.
Conclusion:
To summarise, for a contract to be valid and legally binding, it must contain all five characteristics. It will not stand up in court if any of the ingredients are lacking. It’s also critical for the contract’s signee to properly comprehend what they’re reading, what’s being offered to them, and what they’re signing.
