In wikipedia encyclopaedia, consideration in relation to law provides the legal value in connection with contacts (wikipedia, 2009). This is something sensible promised to an individual when creating a contract. This can be in form of services, physical things, money, and action promised or abstention from an action to come later. In common law before the contract become binding, there must be a consideration which is a prerequisite requiring both the parties to offer consideration.Let our writers help you! They will create your custom paper for $12.01 $10.21/page 322 academic experts online
On observing past consideration we find out that it has no legal value and as a result it cannot be used as a basis of forming a contract. An example of past consideration can be provided as in this example. Person x can be on the balcony of his house chatting with a friend (person y) on a balcony of the opposite house. During the process of chatting something scaring to person y happens and he falls down from the balcony. X then promises to compensate y $700 per year for 10 years, after 5years have elapsed x finds a reason not to compensate y for the injury. Y will therefore not have a reason to sue x in the court of law because the contract at this situation is not binding. This is more of a promise than a contract, and it therefore loose a meaning of taking an action to the first party. This is because person x was not liable for the injury that occurred to person y. He only decided to offer compensation out of will. Any thing done out of will or rather a promise is seen to be past consideration.
Consideration can be explained further by the use of an example. An example of a consideration is where when person x sings a contract with person y such that x will plough y’s piece of land at $350, x’s consideration will therefore be the service to plough the piece of land. Y’s consideration is the payment of $350. This examples brings out a picture of valid contracts because both x and y have a promise to offer. This clearly shows that x has a promise to plough the land while y has the promise to pay $350; here consideration is now seen from both and as a result becomes a valid contract.
Actually a contract is an agreement enforced by law and that an agreement can lead to a contract when there is a consideration. Before explaining the contract given we have to come up with an understanding on the essential elements that make a contract valid or binding. In order for any contract to be formed there must be two parties, the party offering the contract and the party accepting the offer. In this case there must be law of offer and acceptance to make a contract or an agreement.
Another thing to remember is the lawful consideration, this means that a price or a promise has to be paid in order to make the contract binding. The capacity of the parties is also very important. This actually means, the person offering the contract and the person receiving the contract must be competent or have the capacity to enter a contract.
There should also be free consent, just to mean the parties must have agreed on the same thing with the same sense without fraud, mistake, duress, and undue influence.Order now, and your customized paper without ANY plagiarism will be ready in merely 3 hours!
Law of objects is another thing that should be taken care of under contracts. This means that something to be agreed on should be lawful. There should also be intention to create legal relations, the parties that are making an agreement should have legal consent or have legal or domestic agreement. The possibility of performance in the law of contract is very important. This means that the offer must be capable to be performed to give right to physical and legal right.
After looking at the above explanations in the law of contract we will now discuss the situation of Arti and bee Ltd. We see that Arti entered a contractual agreement with Bee Ltd to write a study manual for an international body award. Arti did not comply as per agreement they made. Arti actually did not meet the agreement but had written to Bee Ltd that he was too busy to write the text.
Arti took a long period of time to write to Bee Ltd on his inability to write the study manual as per the time of agreement. In consideration, as seen from the definition we find out that the consideration of Arti was to write the study manual the time framework agreed between him and Bee Ltd. Actually this contract is binding because the conditions under the agreement were accepted.
For this reason, consideration to be seen not binding Arti would have rejected the offer to provide the study manual by the time of agreement. In this context we find that Arti should be accused lawfully because of accepting to take an offer that could not be brought to completion at the time of agreement. On the other hand Bee had already trusted that the study manual will be provided at the right time after having incurred a lot in terms of the preliminary expenses for the study manual, more so Bee Ltd will fail to meet its contract to supply all the business body’s the study manuals. This is a great inconvenience.
This in accordance to the law of contract is found binding, as it is explained that a contract is an agreement enforced by law. For an agreement to be arrived at there must be an agreement and the agreement should be enforced by law. An agreement can be defined as every promise and any other promises making the consideration for each other. A promise is therefore an accepted proposal which when accepted becomes a promise. This now clearly show that when Arti accepted to write the study manual within the specified period of time, Arti had accepted the offer and thus had signed the contract with Bee Ltd.
In the website allbusiness.com we can see that in the law of contract, for a contract to be legally binding it needs two essential elements which is the agreement and consideration (ALLBusiness, 2009). Within the agreement and consideration, there must be some things that will provide the legalization of the contract. This is the offer, performance, terms and conditions, obligation and payment terms and the breach of contract. The other thing is the point of agreement between the two the one offering and the one accepting the offer. It should be understood that not until the parties involved in a contract come to an agreement the law cannot be considered binding.We'll complete your 1st custom-written order tailored to your instructions with 15% OFF!
A contract becomes legally binding when both parties comes to a point of agreement and finds all the conditions governing the contract suitable. At such a time the contract can now be seen legally binding because the consideration between the parties is clearly drawn in terms of conditions provided, for examples the payment and the performance required.
In the question we see that after the negotiation between Arti and Bee Ltd there was an agreement of Arti providing the study manual as per the time of agreement but does not meet the requirement. Thereafter Arti writes late to Bee Ltd that he was too busy to write the study manual within the specified period of time. This in turn makes Bee Ltd to fail meet its requirement. In this case the contract between Arti and Bee Ltd is binding and therefore Bee Ltd has a right to sue Arti in the court of law because of making the organization to miss its obligation.
Not only did Bee Ltd miss to meet its obligation but it had already incurred a lot of expenses in relation to the publication of the new manual. This therefore shows the incapacity of one party or the failure of one party in the contract. Law of contract provides that when a contract has been entered by the parties under normal circumstance, meaning all the parties are of sound mind and none was in duress or undue influence. All in soberness, then the conditions provided after being accepted and an agreement reached. Arti is therefore liable for judgment under the law of contract because he accepted the offer under a sober condition and considered all conditions, this means that the consideration was made right and the only thing to do was to deliver in accordance to the agreement because it was already binding.
When one group proposes an offer and the other accepts it, both will have a consideration made under the law of contract. This is actually the situations governing the contract. This means that during the process of initiation of the contract, both parties have one thing in common as per the agreement made. One party offering the offer should pay the price worth the agreement of the offer and the other party receiving the offer has to meet the conditions agreed. For example if he has to provide a service he must make sure that the conditions and terms are met. Therefore the consideration faced by the parties is the capacity of all to fulfil the promise as per the terms and conditions.
In the above explanation we clearly understand that there were conditions provided during the contract initiation. These conditions according to the law of contract are the ones that make the law legally binding. For as long as both parties agreed and in one common thing then a contract becomes binding. This now brings out the reason of considering Arti liable, for the late complain that he sent to Bee Ltd. Arti would have weighed the situation on his side and consider making early request to Bee Ltd so that the Bee fins a better solution for this problem.
There are still more things that are to be remembered in the law of contract. Before concluding what Bee Ltd has to do to Arti, we have to know more what the law of contract provides about consideration. We have to understand that under the law of contract the court really don’t care if the deal between the parties was monetary fair but rather considers the legal obligation passed by each party or duties passed to the other parties. The court’s concern is on the occurrence of consideration other than its sufficiency. Like in the case of Arti and Bee Ltd, the court will in this case observe the consideration between the two parties instead of the availability of consideration. What is meant by the court observing the consideration is, the court observing the promises made between the two parties and confirming if there is a reason to prove them binding. If the court establishes them binding, it will at this stage find a reason to take an action to the party that did not make the consideration right.Just $12.01 $10.21/page, and you will get your custom-written original paper by our team
Now according to the law of contract Bee Ltd has a possibility to take an action against Arti. In the information explained earlier in this study we see that, there are a series of conditions that make a contract legally binding. Some of the conditions we discussed were that the parties involved in a contract must all be of a sound mind. In this case we mean that none of them is under the influence of drugs or has mental disorder. We also discussed the fact that consideration must be there, meaning that there should be a price or promise to be paid or fulfilled.
In the case of Arti and Bee Ltd the above discussed solutions apply and therefore we find the contract binding. When a contract is said to be binding it means it is legal and can be brought to the court of law if one party fail or becomes incapable of providing the contract binding. My advice to Bee Ltd is that it has to take action to Arti. Here we will not consider the message of complain provided by Arti that He was busy because he sent the message when it was already late and Bee Ltd had already committed itself in providing the study manual for international business award. Besides the commitment made By the Bee Ltd it had also incurred a great deal in terms of preliminary expenses. Bee Ltd has an obligation of taking an action to Arti.
Allbusiness (2009) How Law is Seen Binding. AllBusiness.com, Inc. Web.
Wikipedia encyclopaedia (2009) Definition of Consideration. Wikimedia Foundation, Inc. Web.