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Business Law - Contract - Essay Example

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Contract is an agreement or a promise made usually between two parties where one engaged himself or herself to deliver goods or to render service to the other. When the other party accepted the offer, a contract is deemed formed. The validity and the enforceability of the contract depend on the provisions of the laws that cover the kind of contract that was formed…
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Business Law - Contract

Download file to see previous pages... As a general rule, contracts are binding regardless of their form as long as the essential requisites are present. However, there are those contracts that should be in certain form, for example, should be in writing, to be enforceable.
A contracting party who violated the terms or conditions of a contract may be sued for breach of contract in a trial court. Breach of contract may be committed if there is a valid or binding contract or when a contract was already formed. The guilty party is ordered to pay damages capable of pecuniary estimation to the aggrieved party. A person who is in good faith or who is innocent cannot be sued if there is a breach of contract. Likewise, a third party who has no participation or connection in the formation of the contract cannot be sued.
A contract may be bilateral or unilateral. A bilateral contract is one in which both of the contracting parties formulated and agreed upon the terms and conditions of the contract. Thus, the contracting parties have reciprocal obligation to perform their promises and the contract is already binding and enforceable immediately after a valid consent was given. In a contract of sale for example, the buyer promised to pay the seller of a piano the amount of $1,000 if the seller had delivered the piano in the house of the buyer. If the seller does not deliver the piano, the buyer has no obligation to ...Download file to see next pagesRead More
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