The legal contract is essential to the set of promises enforce by the law. It’s typically, and the party promises to do something for the other in exchange for a benefit.
The contract can also be written and verbal and involves one party making the offer and another accepting. If the contract’s promise that not kept, the harmed party can seek a legal remedy.
Table of Contents
How the Legal Contract Work?
- The legal contract agreement must take all of the following five characteristics:
1. Legal Purpose
- The contract must take the lawful purpose it enforces. For example, if one business partner contracts, someone kills another business partner.
- But the person removes the money without fulfilling the contract. And there’s nothing that complete. Also, the agreement of murder for hire illegal, and the contract unenforceable.
2. Mutual Agreement
- All parties to the contract must take reached the agreement. That, one party must take extended the offer to which the other parties take agreed.
3. Consideration
- Each party of the contract must agree to give up something of value in exchange for the benefit. For example, we hire an independent contractor to repave our driveway paving contractor.
- And we sign an agreement in which we promise to pay the sum of money in exchange for the paving work.
- Both we and the contractor take agreed to give up something of value. We have decided to pay money, and the contractor agreed to perform the paving work.
4. Competent Parties
- The parties and contract must be competent. That, they must sound mind, of legal age, and unencumbered by drugs and alcohol.
5. Genuine Assent
- All parties essential engage in the agreement freely. And contract not to enforce if one and extra parties take made mistakes.
- Likewise, the contract cancels if one party takes committed fraud and exerted undue influence over another.
- For example, we sign the contracts in which we agree to sell our house to our next-door neighbor
for one crore. - When we signed the contract, our neighbor was threatening. It’s clear, we agreed under duress, so the deal isn’t valid.
What is the Breach Contract?
- If one party fails to fulfill the duties under the agreement, that party takes breached the contract.
- For example, suppose that we take hired the masonry contractor to construct the brick patio outside our restaurant.
- We pray the contractor half of the agreed-upon price upfront. The contractor completes about the quarters of the work and then stops.
- Also, they keep promising they return and complete the job but never do. By failing to fulfill the promise, the contractor has breached the contract.