Essay on "Five Elements of a Contract"

Essay 4 pages (1246 words) Sources: 3 Style: APA

[EXCERPT] . . . .

From the author's assertion above, the consideration should in this case originate from the promisor. Forms or examples of consideration include, but they are not limited to, goods, services, and money.

Capacity

Capacity according to Seaquist (2012) has got to do with the mental state of the contracting parties. In the words of the author, "a party who lacks capacity does not have the ability to understand the consequences of entering into a contract" (Seaquist 2012, p. 145). In this case, two things are often taken into consideration. These include mental competence and age. In that regard, therefore, parties entering into a contract as Miller and Jentz (2007) point out ought to have the contractual capacity to enter into the said contract. Those who do not, or may not, have capacity to enter into contracts include intoxicated or mentally disordered persons and minors.

Legality

The very last element in this case is legality. According to Miller (2011), a contract ought to be entered for legal purposes, i.e. To accomplish a legal undertaking. Therefore, a contract that goes against public policy or is illegal in some way cannot be deemed valid. It is however important to note that "an illegal contract is one that is defined by the law of its state as being illegal" (Seaquist, 2012, p. 147). Other contracts that may be viewed by some states as being illegal include, but they are not limited to, non-competition contracts that are overly broad, and contracts that fail to adhere to specific licensing requirements (Seaquist 2012).

2. Common Law Contract

The contract in question, as defined elsewhere in this text, is governed by common law. This is particularly the case given that it involves personal services. As the head chef of Fabulous Hotel, the said entity has essentially hired me as an employee. According to Seaquist (2012), "examples of common law contracts" include insurance, real estate, and personal services such as hiring an individual as a professional or employee. In that regard, therefore, the contract I signed is governed by common law.

3. Circumstances in which the Agreement would be Unenforceable

An unenforceable contract according to Miller (2011, p. 197) "is one that cannot be enforced because of certain legal defenses against it." Some of the most common defenses to contracts according to Seaquist (2012) include: impossibility, duress, undue influence, and fraud. For purposes of this discussion, the agreement would not be unenforceable if it was obtained under undue influence and/or under duress. A contract could be avoided under undue influence if it is established that thanks to the nature of the relationship between the parties involved, one party could have been unfairly influenced or dominated by another (Miller, 2011). According to the author, "the essential feature of undue influence is that the party being taken advantage of does not, in reality, exercise free will in entering into a contract" (Miller, 2011, p. 264). Therefore, if I could prove that I did not act out of my free will, the agreement would be deemed unenforceable. The employer could have, in this case, excreted undue pressure on me to append my signature on the doted line. Similarly, if I could prove that the agreement was entered under duress; this would constitute a valid defense. Duress according to Seaquist (2012, p. 150) "consists of forcing a party to enter into a contractual relationship under threats." In my case, threats could include the threat (from Fabulous Hotel) of termination of employment or demotion.

References

Miller, R. (2011). Modern Principles of Business Law: Contracts, the UCC, and Business Organizations. Mason, OH: Cengage Learning.

Miller, R. & Jentz, G. (2007). Business Law Today: The Essentials (8th ed.). Mason, OH: Cengage… READ MORE

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