Introduction to Business Law

A contract is essentially defined as a meeting of the minds between parties with regard to a particular subject and consideration . The most important part of every contract therefore is that there is a meeting of the minds ' or agreement . People are generally free to stipulate as to any terms or conditions in a contract subject to certain limitations such as public policy , morals and public good . There is no fixed form for contracts as such may be oral or written . Given the complexity of the transactions at present , most contracts are in

written form . A perfect example of a written contract is a contract of sale as presented herein

KNOW ALL MEN BY THESE PRESENTS That I (Insert name (citizenship , of legal age , a resident of (address ) is the lawful owner of a certain motor vehicle which is more particularly described as follows

MAKE : Honda MOTOR NO : PEWD7-Y306791

SERIES : CRV CHASSIS NO PADRD1830YV206791

TYPE OF BODY : Wagon PLATE NO : WRF 380

YEAR MODEL : 2000 NO : 7141

C .R . NO : 5188995-0 That for and in consideration of the sum of (insert amount (Currency receipt whereof is hereby acknowledged to my entire satisfaction , I hereby sell , transfer and convey by way of Absolute Sale unto (Buyer (nationality , of legal age , and resident of (address ) the above described motor vehicle , free from all liens and encumbrances

This is a valid contract of sale that specifically identifies the subject of the contract , which is the vehicle , and also identifies the parties to the contract . Another essential element of this contract is the exact identification of the subject in to guarantee that the parties are agreeing upon the same object . Also , there is a need to add the consideration or compensation that is to be paid for the item in question . To further validate the contract of sale , it is required in certain statutes that both parties affix their signatures to the contract

It is essential to remember that contracts do not only cover the conveyance of goods , as in a contract of sale . Contracts may also govern the performance of certain services in return for a certain reward or compensation . The only limitation to this form of contract for services is that such contract must not amount to involuntary servitude or slavery . An example of this would be a short contract for service between a parent and a child

Parties to this contract herein agree that in return for the excellent academic performance of (insert name ) by maintaining (grade point average ) for the period (insert time frame (insert name of other party ) agrees to give , without further qualifications , the sum of (insert amount of compensation

All parties agree to comply with their obligations under this contract upon the completion of the period stated herein

This simple contract of service embodies all the key elements of a valid and enforceable contract , namely , agreement , consideration and subject (service . If the first party meets the grade point requirement set forth in this contract the...