STANDARD FORMS OF CONTRACT

Standard Forms of Contract-The Scope and Nature of Amendments



Standard Forms of Contract-The Scope and Nature of Amendments

Outline of the Paper

This paper provides summary of four articles based on the topic of contracts and the scope of amendements to the contract. The paper is divided into three sections. The first section elaborates the reasons for selecting the topic. The second section highlights the purpose of the article. The third section covers the major part and provides the summary and critical evaluation of the articles selected. Before we get started, it is essential to have some basic knowledge about the nature and concept of contract.

Synopsis of the topic

Essential to the formation of contracts is the existence of valid consideration offered by each party. Consideration is something, such as funds, forbearances, performances, or return promises, that each party offers in exchange for the other party's (or parties') consideration. Absent consideration, a promise that would otherwise constitute a contract is a mere gift unenforceable under law. Accordingly, with relatively few exceptions, a promise unsupported by valid consideration cannot be a contract.

Valid contracts must also concern legal subject matter. Public policy in favor of the freedom to contract is a respected aspect of American legal thought. This preference for freedom of contract is generally limited only by the boundaries of statutory law, public policy, or common law (judicially decided law). If contracts conflict with statutes, such as by requiring performance that would amount to a criminal act, the agreement lacks legal subject matter and is void as a matter of law even if the parties are unaware of its illegality.

Contracts are commonly referred to as unilateral or bilateral in nature. Bilateral contracts are formed when parties offer their consideration in return for a promise or set of promises. Conversely, unilateral contracts are formed when one party extends an offer to the other that may be accepted by performance rather than by return promises.

Valid contracts must include all essential terms and must be sufficiently specific. The omission of essential terms from agreements renders them unenforceable and therefore invalid. Valid contracts must also sufficiently describe their essential terms. Terms are described as sufficiently specific where the adequacy of a party's performance can be understood when considered in light of such terms. Insofar as contracts with terms that are insufficiently defined cannot be enforced, they cannot be valid.

In order for contracts to be valid and enforceable, agreements must generally represent a meeting of the minds and intent to be bound objectively manifested by parties with capacity to contract; be supported by valid consideration from each party to be bound; include essential terms that are sufficiently specific and definite to be enforced; be of sufficient form, such as in writing; and have lawful subject matter.

There must be at least two parties to contracts. Parties to contracts must have the capacity to form those agreements. Minors and incapacitated persons, such as those who are incapable of handling their affairs due to mental disorders, generally lack the ...