Contracts
Contracts and agreements are common
within any societal setting. People, corporations, and agencies enter into
agreements with one another for various reasons. For instance, if different corporations
have related roles, they may agree to form a synergistic relationship to boost
their overall output. Additionally, agencies enter into contracts to
efficiently deliver various services to their customers. The paper will discuss
various types of contracts and agreements.
The first
question entails the difference between void and voidable contracts. A contract
that a court of law cannot enforce is void. The void contract may also result
from the death of one party or the terms present allow an instance of illegal
activity (Investopedia, 2017). During
the agreement of the contract, it must satisfy several requirements for it to
be legitimate. For instance, individual consent and legal approval must be
taken into account during the formulation of a contract or agreement. Notably,
an agreement may become void due to change of law or invalidity of an act. On
the other hand, the contract that can be enforced by the law is voidable. In
the voidable contract, one or both parties are not legally in a position to
agree such as in the case of a minor (Investopedia, 2017). The
first party is free to take the role played by the second party within the
contract.
A contract which
is void is one that lacks enforceability from any party. During the formation
of an agreement, informed consent must be sought from the involved parties. The
consent allows room for a party to decide whether to form an agreement of not
with another. An agreement that does not let the parties make decisions when
form it is void freely. If neither party refute the agreement within the
stipulated time, the voidable agreement is valid. Later on, as time passes by, the voidable
agreement becomes invalid especially if either party revokes it. If a contract
is void, the damages that are incurred due to non-performance of the contract
cannot be attributed to any party.
A given contract
may be against the public policy especially if they promote certain scenarios
like breaching of laws or harming of citizens (Chen-Wishart, 2015). In such a case,
the contract is not enforceable by the law. Notably, one-sided contract refers
to an agreement that a given party makes a given promise to another in exchange
for an act. The offeror may also abstain from committing actions that may
affect the offeree. One first party is legally obligated to fulfill the
requirements of the contract, unlike the second party which has no role to
perform. The unilateral contract which is legally enforceable allows one party
to pay the other on the performance of a certain duty (Investopedia, 2017). The reason is that the offeror has not been
mandated to act in return of the contract made by the first party. The promise
made by the first party is therefore enforceable by law.
In most cases,
if a contract involves an underage, it is deemed to be voidable. The minor
under the given contract may avoid legal liabilities laid. When the minor
attains the age of a major, an affirmation of the contract may be made. If the
juvenile is not interested in the contract, the contract is rendered void.
In various
cases, some people may lack a legal capacity to agree. For instance,
individuals who do not have sound minds are regarded to be incompetent to
agree. Therefore, an individual who is of sound mind is capable of accepting
the contract. Additionally, some contracts are illegal while others are legal.
For instance, contracts that involve committing hazardous activities to the
public or criminal acts are unlawful. Legal agreements are those aimed at
improving the human status on earth. The reason to abolish void contracts in
business is that they can cause harm to the public and do not have a legal
basis to exist.
References
Chen-Wishart, M. (2015).
The Nature of Vitiating Factors in Contract Law.
Investopedia. (2017). Voidable Contract. Retrieved from: https://www.investopedia.com/terms/v/voidable-contract.asp
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