Question

Research relationship between contracts and promises, and write, 1) summarizing whether you believe that contracts are promises; 2) analyzing whether and why contracts and promises should be treated the same or differently; and 3) in your analysis, consider the potential economic, legal, and moral consequences of your answers. You may wish to review this article along with other resources from Westlaw or JSTOR before beginning to write your answer.

Answer 1

Ans. 1.

Contract supposed as kind of promise. Charles Fried in his work ‘contract as promise (1981)’ has argued that contracts should be enforced because they are promises. Daniel Markovits has emphasized in a research or ‘Contract and Collaboration, YALE L.J.’(2004) that contract that takes contract to be a special case of promise. Fried 1981; consider contracts to be “legally enforceable promises’’.

Because of familial relations, the similarities between together contract and promise are too easily assumed as the same. Only deference between is the legal tender. The private promise depends on that it is not only freely made but also freely kept but the most of contractual promises are intended to do not have this voluntary character.

Ans. 2.

Similarities between contract and promise:

1. Some contractual promises coexist with private promises of the same content. When making a private promise, the promisor gives the promisee ground for belief that the promisor will perform. In an agreement between contractual promises also taken to be an exchange of private promise.

2. A contract is an agreement enforceable by law as well as promise is an illegal contract enforced by moral bindings.

3. In contract, the liability exists between the parties by the terms of the parties as well in promise there is also a liability exists between the parties by the terms of voluntarily accepted.

Similarities between contract and promise:

Deference between contract and promise:

1. A promise is unilateral; it does not request any accordance, and not even an agreement. It is understood as being acknowledged most often as well the contract is naturally made by a notary to verify the conformity to the Law.

2. Some time there is some abusive contract, it could be protected as the contract is protected by the Law on other hand promise can’t be protect as there is no legal support behind it .

3. The typical contract is a commercial, arm’s length bargain, and those are the agreements the law most readily recognizes as contractual but the promise is not more than an emotional and moral bound

Ans. 3. Most of contract begin where private promise ends. The main reason is to breakdown of trust and moral bindings between. The objective reasons that apply to promisor and promisee are replaced once what was a promise is subject to legal intervention. In making a private promise, a promisor ordinarily creates a sufficient reason to perform the content of her promise but some time due to change in circumstances it may change. it is an legal and oral aspect of contract and promise.

To an economist, a contract is an agreement under which two parties make reciprocal commitments in terms of their behavior - a bilateral coordination arrangement. The contact may sometime more expensive because of change in the law or stamp duties . Some time it may have some monetary expenses on legal documentation so promise may preferred.

Consideration is the return promise that makes a contract mutual. Consideration need not be a monetary payment. It can also be a voluntary surrender of a legal right. Under traditional contract law, courts only inquire into the presence of consideration, not its form or adequacy.

The proper economic interpretation of coercion is that it concerns prevention of monopoly.