In: Finance
John and Jane have been dating for 2 years. John got on one knee with a ring and asked Jane to marry him. She accepted. several months later Jane found out that John has been seeing another women and she broke off the engagement. What are the elements of a contract? Were the elements of a contract met? Was a contract formed? Who breached the contract? Who gets to keep the ring?
The requisite elements that must be established to demonstrate the formation of a legally binding contract are
(1) offer
(2) acceptance
(3) consideration
(4) mutuality of obligation
(5) competency and capacity and, in certain circumstances,
(6) a written instrument.
From the above between John and Jane, there is an offer, an acceptance, a consideration as well but the act or performance does not bring the parties in the capacity to enter in the contract since the consideration is personal in nature.
In the above case study , the agrrement between John and Jane are persanal in nature. Where there is a promise to marry, such promises does not bound the parties to any contract.There are no formal requirements regarding the contract. It need not to be evidenced by writing and the law prescribes no particular form of words. A promise by one person to marry another is not binding unless and until that other also promises to marry the first person. Mutual promises to marry may be implied from the conduct of the parties. A declaration of intention to marry another made to a third person will not constitute a promise unless communicated to the other person on the authority of the person making the declaration.
Otherwise as the case study given, there is no such contract present between both of them.As far as there is point of who will keep the ring, then it is a matter of mutual understanding whether John will keep it or Jane will.