International Legal and Ethical Issues in Business IP Week 3 - Essay Example

This rule also applies to someone who is inebriated or otherwise under the influence of intoxicating drugs. For the purpose of this element, likewise minors do not have the capacity to enter into a contract, so a parent or guardian must act on their behalf. A minor’s age of consent varies from state to state and different countries but is generally eighteen. 2. Legal Purpose. In order for a contract to be valid, it must also be legal in the domicile which it is drawn. For example, loan contracts with usury above the legal limit are invalid, as are agreements for such things as prostitution, arson, murder and gambling. 3. Offer and Acceptance.

This aspect is common in the real estate business, where two parties have something to offer each other. The seller has a house or land and the buyer has the cash to purchase the property. They bargain for a bit and finally acceptance is made from both sides. At this time they have a contract, which once signed can be legal and binding. 4. Consideration. The seller surrenders his property and the buyer hands over his money. As such they have consideration. Of course with real estate, there are often two more parties to the contract, for any number of entities can be party to the contract.

The real estate agent does the footwork for both buyer and seller and expects to receive a commission for the efforts. Also, normally the Mortgage Company or bank provides the cash for the transaction and the buyer promises to repay the mortgager. The objective theory of contracts basically means that the person entering into the contract would consider it valid if he or she thought the other party had the intent of carrying through with his offer and the other party’s conduct would justify such intent (Thompson, 2005).

A good example of this would be the Washington’s Birthday celebration some car dealers had many years ago. Washington was born on