Breach of Contract

Author

Professor

Subject

Date

Breach of Contract

Introduction

A contract is an exchange of promise between two or more individuals to carry out or abstain from carrying out an act , which is protected by law . In principle , any oral agreement between two individuals can produce a binding contract . However , people are very much accustomed to seeing contracts in writing that many of them deem that to be enforceable a contract must be primarily in writing . Many people may not have knowledge of what are the indispensable elements necessary

to make a contract enforceable . Yet the American economy is founded on a system of laws that enforces freely entered contracts , on freedom of individuals to contract , and most importantly on the payment of damages in case of breach . Damages are awarded in view of the underlying principle that no one should suffer loss because another has failed to properly perform his or her part of the contract

Legal Elements of Contract

The essential elements indispensable to form a binding contract are generally demonstrated through : an offer an acceptance in strict observance with the terms of the offer objective or legal purpose consensus ad idem or mutuality of obligation consideration and competent parties (Legal Elements of a Contract 1

I . Mutuality of Obligation

Agreement is element of any contract . Before the materialization of a contract , there must be a consensus ad idem : specifically , there must be a meeting of the minds between the contracting parties (Legal Elements of a Contract 1 . The...