Course Formation of Business Contracts - Coursework Example

Download file to see previous pages  One of the course’s concepts is the formation of a contract that follows the legal definition of a contract as a legally binding agreement that is enforceable by a legal system. Such enforceability however depends on the formation of a contract that meets essential legal elements. One of the elements is an agreement between the involved parties. This includes an offer by one party and acceptance, subject to legal provisions, by the other party, known as the offeree. There are however a number of principles that govern offer and acceptance such as communication of an offer or acceptance, termination of an offer, and communication of such a termination.   Another essential element that defines the formation of a contract is the transfer of consideration from the offeree to the offeror. Consideration, like agreement, is also governed by legal principles such as the doctrine of past consideration and the existence of an offer to be supported by the consideration. Other elements in the formation of a contract are the parties’ “intention to create legal relations,” “reality of consent,” contractual capacity of the parties, and legality of the subject matter (Mead, Sagar, and Bampton, 2009, p. 44). A formed contract, based on the elements, can therefore be enforceable, unenforceable ab initio, or voidable at a party’s discretion (Mead, Sagar, and Bampton, 2009).   Another learned concept from the course is a person’s legal capacity to form a valid contract. Even though every individual is generally presumed to have a contractual capacity, there are exempted categories of people whom law presumes to lack contractual capacity. Such groups are minors; people below legally recognized majority age, those who are mentally incapacitated, and those who are substantially under influence of intoxicants. Minors, due to their lack of capacity are only legally liable for being a party to contracts for supplies of their necessities while the mentally ill or intoxicated are legally liable when they become parties to contracts for the provision of necessities or at a time of insignificant degree of insanity or intoxication.   Any other contract by the parties, whose subject matter is legal, is therefore unenforceable unless affirmed by the parties upon gaining contractual capacity. The contracts however bind the other party, if it has contractual capacity unless the contract is avoided. Principles of the doctrine of legal capacity also have a number of exceptions (Twomey and Jennings, 2010). Relevance of the concepts to my career The concepts are relevant to my intended career of venturing into business as they regulate the profession.   My career will, for example, involve the formation of contracts with both my suppliers and my buyers for the sale of the clothes. The establishment of promises and their enforceability will therefore rely on the essential elements of a contract and contractual capacity of my customers and suppliers. The concepts are therefore relevant in regulating agreements that will exist between my buyers and suppliers, and my business (Mead, Sagar and Bampton, 2009). How the concepts will help me prepare for my career The concepts will help me prepare for my career through developing my knowledge in the career’s legal environment.   Being informed of the formation of enforceable contracts will for example help me to avoid losses due to unenforceable contracontracts and to embrace risks in ventures because of protection by legal provisions.

Applicability of the concepts to my career

The concepts are applicable to my career because commercial transactions are subject to the law. The common-law doctrines of contract formation and enforceability, being recognized sources of law, therefore apply in regulating transactions in the profession (Twomey and Jennings, 2010).

Learned lesson from the course

The course was very explorative with a number of lessons on legal aspects of relations. My most significant lesson is however the fact that not every person has legal contractual capacity. While I initially assumed that any person of a reasonable age is liable for personal actions, I have learned that minors, the mentally ill, and those who are chemically intoxicated lack contractual capacity. I am as a result better prepared, with an understanding of business’ legal environment, to venture into the commercial industry.

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