13.4 C
New York
Wednesday, February 21, 2024
HomeInsurance LawsContract Laws

A voluntary agreement between two legally competent parties to perform or refrain from performing a legal action for traditional consideration essential elements of a valid contract:

  • Qualified parties- must be lawfully eligible by age and mental competence.
  • An offer and acceptance ( mutual consent)-“must be a meeting of the minds.”
  • The purpose of the contract must be legal
  • Consideration- a promise to perform
  • Description of what the deal entails
  • Written and signed

Contract Classifications

  • Expressed-showing intent with words, orally or written
  • Implied-agreement demonstrated by acts and conduct
  • Unilateral-only one party makes a promise
  • Bilateral-both parties promise to perform something
  • Executed-both parties have fulfilled their promises
  • Executory-something remains to be done by either party

Legal Effect of a Contract

  • Valid-Binding and enforceable on both parties
  • Void-Lacks an essential element of a valid contract- has no legal effect
  • Voidable-may appear to be valid on the surface, but legally voidable by some illegal act
  • Unenforceable-may appear to be valid, but legally not

Discharge of Contract

  • Performance-all terms performed
  • Substantial performance-contract still in effect, needs to be completed
  • Mutual agreement-parties agree to cancel
  • Operation of Law-can for various legal reasons

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_img
[td_block_1 custom_title="Must Read" limit="4" f_header_font_transform="uppercase" ajax_pagination="next_prev" block_template_id="td_block_template_2" m4f_title_font_family="394" m4f_title_font_weight="700" m6f_title_font_family="394" m6f_title_font_weight="700" sort="modified_date" offset="4" m4f_title_font_size="eyJhbGwiOiIyMCIsImxhbmRzY2FwZSI6IjE4IiwicG9ydHJhaXQiOiIxNiJ9" m4f_title_font_line_height="1.3" category_id="121"]
spot_img