Critical Analysis Paper
Describe an example of a contract that you or someone you know entered into (e.g., rental agreement, cell phone agreement, property purchase or lease [e.g., car, home, furniture, etc.], home or car repair, or student loan agreement). In your description, be sure to provide specific contractual details including parties and subject matter involved. You must also address the following:
Define the five essential elements of an enforceable contract, and demonstrate how each element relates to your example.
Explain the circumstances of a breach of contract in your example, and discuss possible remedies.
Your paper must be three to four pages (excluding title and references pages), and it must be formatted according to APA style as outlined in the Ashford Writing Center. You must cite at least two scholarly sources in addition to the course textbook..
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
Contracts
A contract is not a "thing," but a relationship between its parties. This relationship entails mutual rights and duties contained in what is essentially a set of promises that the courts will enforce. Liuzzo (2013) defines a contract as "a legally enforceable agreement that is created when two or more competent parties agree to perform, or to avoid performing, certain acts that they have a legal right to do and that meet certain legal requirements" .
It is important to note that while all contracts are promises, not all promises are contracts. Some promises are unenforceable and, therefore, not contracts. For a promise to be enforced, it must include all essential requirements of a legal, binding contract:
Mutual Assent: The parties must show by words or conduct that they have agreed to enter into a contract. The usual method of showing mutual assent is by offer and acceptance.
Consideration: Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange
Legality: The purpose of a contract must not be criminal, tortuous, or otherwise against public policy.
Capacity and Consent: The parties must have contractual capacity. Some persons, such as incompetents (persons placed under guardianship by a court order), have no legal capacity to contract, while others, such as minors, non-adjudicated incompetent persons, and intoxicated persons, have limited capacity to contract. All others have full contractual capacity.
Writing: In some instances a contract must be evidenced by a writing to be enforceable, but in most cases, an oral contract is binding and enforceable.