Contract law research Paper Example | Topics and Well Written Essays - 2750 words

Contract law - Research Paper Example As earlier mentioned, a contract refers to a relationship of exchange that is either written or oral agreement between persons. This relationship contains one or more promises, which are legally enforceable. Several crucial elements are reflected by this definition of a contract. They include the following: the first element of an indenture is that, it is an agreement that is either written or oral between a minimum of two persons. This element implies that one cannot make a contract with oneself. The relationship in a contract is consensual and voluntary, meaning that no one is coerced to sign a contract. Even, though, the minimum number of people required in signing a contract is two, the transaction can involve a limitless number of parties. The parties create a contract with intent and free will to be bound, and they reach an agreement concerning vital provisions of the relationship. A contractual obligation is distinguished from other legal duties by the agreement element. The s econd element is that a contract is a relationship of exchange that is based on the principle of offer and acceptance. This element emphasizes that the parties who enter in to a contract are bound together by the by a commodity that they are exchanging. Minimum interaction is involved in a number of contractual relationships (Blum, 2007). For instance, if an individual enters into a contract to have his hair cut, the barber will perform a quick activity of trimming his hair and the individual will honor his obligation by paying for the services. These two activities will mark the end of the contractual relationship. On the contrary, contractual relationships like supply contracts or leases could last for several years, and the parties involved engaging into constant dealings that are controlled by the provisions stated in the agreement. A contract relationship has an essential purpose which is exchange. Society and the economy require the trade of intangible rights, services and pro perty. These exchanges are regulated and facilitated by a contract as part of its chief role. Therefore, a contract carries with it the principle of reciprocity, in which one must part with something to get something back. The third essential element is that a contract should have a minimum of one promise, which is made with a hope of being honored in a later date as per the agreements. A contract is not constituted in the instantaneous exchanges, even though they involve a trade and are consensual (Blum, 2007). A promise, therefore, goes beyond the agreement instance as a future commitment. If both parties honor their side of the commitment at the expiry of the agreed duration, then there will be no need of involving the law in contracts. Contract law comes in incase of breach of contractual agreement by either of the parties. Last but not least, a contract has an