Deceptive or Misleading Conduct: Bad Faith - Essay Example

Contract law permits interested individuals/ institutions or parties to outline their level of indulgence so long as these ground rules do not surpass the established principles in the statutory legislations or precedents under the common law.

It is the desire to fulfill the agreed terms as per the contractual expectations that give birth to a legal relationship as the agreements are enforceable by law. Contract law depends on the tradition that a country has adopted, it is guided both by common law and supported by various statutory legislations. This paper aims to examine various legal connotations and themes within the domain of the law of contract. Various kinds of literature indicate that contract law is often conceptualized concerning five critical themes.

These significant parameters include formation, scope & content, avoidance, performance & termination, and lastly, remedy. Therefore, the subject of the discussion (law of contract) will be framed along these five major themes. In the discourse, the paper examines the formation stage of the requisite condition of creating a validly binding agreement. Secondly, the paper examines the scope & content of a contract. The main theme discussed regarding the same is to express terms and various deliverables within the outlined scope.

Thirdly, the paper assesses how a party to a contractual agreement can avoid the outlined responsibilities without damages being awarded against them. In this regard, the paper discusses issues such as lack of mutual trust & confidence, collateral contract, and presence of bad faith or absence of good faith. The rationale of these arguments is anchored on the fact that certain parties can engage in contractual agreements to connive or gain undue advantage. The fourth aspect discussed is performance and termination.

Within this domain, the paper dissects how contractual; obligations can be brought to the end as a result of performance or where both parties perform according to the stipulated expectations. Lastly, the paper examined remedies in a scenario where a party feels aggrieved by the action of the other party. In this regard, the paper examines the award of damages and scenarios where damages are not the absolute end to protracted contractual engagements.
2.0 Definitions of a Contract/ Contractual Agreement
A contract is said to exist when there is an exchange of relationship that is formulated by the involved parties either through an oral or a written agreement with at least one promise that is enforceable by law without coercion.

On the other hand, the contractual agreement can also be perceived as a process where legal entities or individuals engage in a consented exchange whereby they promise to involve parties through acceptance. At any moment, if these scenarios are meant, it implies that a contractual relationship exists and is legally recognized and hence it can be enforced.