Question

Micro Solutions, Inc. orally promises to pay Thomas $26,000 in exchange for software he will deliver to it. Thomas provides the software to Micro Solutions, Inc. When Micro Solutions, Inc. does not pay Thomas, he immediately files a lawsuit against it. Assume that software is a “service” and NOT a “good” in this case. In determining whether to award Thomas $26,000, a court is likely to...

A. Be more likely to award Thomas $26,000 if he can prove with specificity the existence of the oral contract including its subject matter, price, and place of delivery.

B. Decide whether the software Thomas wrote is worth $26,000.

C. Refuse to enforce the contract because it was not in writing.

D. Dismiss the lawsuit based on a failure to meet the two-year statute of limitations.

Answer 1

A promise is essentially an offer or a proposal, made by a person or an entity, towards another. The assent of the order, results in the acceptance of the offer; thereby creating an agreement. A valid agreement is said to have the essentials of a valid contract, being:

- Proposal

- Acceptance

- Lawful Object

- Lawful Consideration

- Capacity to Contract

It is important to note that all contracts are valid agreements but not all agreements qualify as valid contracts. Thus a valid and enforceable agreement is complete and systematic amalgamation of the necessary elements, which are vital to its validity and existence. Ideally there are two types of agreements:

- Oral Agreements

- Written Agreements

Oral Agreements consists of words, gestures, symbols by which one party conveys a promise or a set of promises to another, which, on acceptance by the other party, becomes a valid oral agreement. They may be express or implied in nature. Valid oral agreements are legally enforceable in the court of law. However in case of dispute or a suit, it is a difficult task for the court to ascertain the true nature of facts and terms of the agreements, without the invasion of bias.

According to the given situation, the court is likely to be more likely to award Thomas $26,000 if he can prove with specifically the existence of the oral contract including its subject matter, price, and place of delivery.