CONTRACT

Contract

Contract

Answer 1

A contract can be made on the basis written or verbal/oral agreement; with the decision regarding nature of the instrument for agreement being dependent upon the legally competent two or more parties, who entered into the contract voluntarily. But the decision by the parties should be taken keeping in view that for the contract to be legally enforceable, the instrument should be in accordance with the Statue of Frauds. Statue of Frauds is a component of State Law which determines the purpose and the nature of contracts that are to be based on written agreements for them to be legally enforceable in the Court of Law (Silverstone and Davia, 2005, pp. 211). Thus, written contract pre-dominantly sums up the agreement between the parties which would be legally enforceable. This appears as the preamble on the basis of which the business with Don could be stopped so as to precede the deal with the other party who are offering twice the price Don is paying for the seeds.

Contractual Liability is the liability that arises out of the legally binding agreement or contract that has been undertaken so as to stipulate the relationship between two or more parties. The contract is defined with the consent of all the parties involved and thus it becomes the liability of the parties involved in the agreement to deliver upon the conditions that have been included in the agreement. It is their contractual liability and if any party turns their back to what they are liable to deliver the other party, they could be sued in the court of law and thus might as well would have to pay for the damages arising out of the breach of the contractual liability. However, with the contract being signed by the minor, the contract does not exist in the first place considering he minor's capacity to contract as well fraud in the execution of a contract. Furthermore, both the parties being the covenants of good faith and fair dealings, the contract stands void.

Answer 2

The requirements contract is void for a couple of reasons that will be discussed in this answer. The son who was a minor and only acted as a delivery man had neither the actual nor apparent authority to bind the company. As a minor, the son lacked the authority to enter into a contract. Thus, the contract could be repudiated once he reached adulthood; if he had the power to make the contract in the first instance. For the reasons discussed above, the son had no contracting authority. Second, the company can cease doing business at any time with Don. Now, since it is clear that the contract is void, there exists no contract between Don or the company to continue doing business with one another. Don ordered as he needed and the company sold at the price and terms it chose if it chose to sell to Don at all. Since there was no obligation on either party to continue to do business with the other, ...