Question

In: Finance

In addition to agreement, what further two elements are required for the formation of a binding...

In addition to agreement, what further two elements are required for the formation of a binding contract?

Solutions

Expert Solution

Agreement covers the offer and acceptance elements of contract binding. Thus the further two elements required for the formation of a binding contract are Consideration and Legal capacity.

1- CONSIDERATION-Consideration is the price paid for the promise of the other party. Considerations that may be exchanged can include, but are not limited to:

  • Money.
  • Services.
  • Tangible items of value.
  • Land.
  • Stock.
  • Promissory notes.
  • Intellectual property (IP).
  • Mineral rights

The limits on such exchanges is that they cannot be for be for illegal goods, services, or other items of value and they cannot involve criminal activity. Examples include:

  • Contracts involving crime.
  • Contracts putting limits on consumer protections.
  • Contracts that cause interference with family relationships.
  • Contracts that excuse a party liability for harm caused by reckless or intentional conduct.

2- LEGAL CAPACITY- Valid contracts involve parties whose judgments are not categorically questioned. The following are groups of people whose consent, and therefore legal capacity, could be challenged:

  • People with mental impairments
  • Minors (under the age of 18)
  • Bankrupts
  • Prisoners or people involved in some criminal activity

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

1. What are the key elements that determine if we should process an item further or...
1. What are the key elements that determine if we should process an item further or sell it at the split off point? 2. What are the key points we should consider in deciding whether to accept a special order?
A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even...
A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even when those four elements are present, there can be a valid defense to a contract’s enforceability. For each of the following, answer whether there is an enforceable contract and explain either why or why not. Example: Betsy hires Frank to transport a shipment of cocaine for her. Answer: Not an enforceable contract. The element of legality is not satisfied because a contact to commit...
A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even...
A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even when those four elements are present, there can be a valid defense to a contract’s enforceability. For each of the following, answer whether there is an enforceable contract and explain either why or why not. Example: Betsy hires Frank to transport a shipment of cocaine for her. Answer: Not an enforceable contract. The element of legality is not satisfied because a contact to commit...
What six elements are required for communication to occur?
What six elements are required for communication to occur?
What six elements are required for communication to occur?
What six elements are required for communication to occur?
You are required to undertake a further review of the company and required to undertake the...
You are required to undertake a further review of the company and required to undertake the following: ? Review the following aspects of financial delegations and accountabilities within the company and determine their compliance with internal control procedures - Expenditure and / or investment approvals - Corporate governance requirements - Loan and lending approvals - Sign off authorities ? Determine timeframes taken to complete and release reports such as operating and cash flow statements - Are these completed within agreed-upon...
describe what elements are critical for COP II and clathrin coat formation to nucleate.
describe what elements are critical for COP II and clathrin coat formation to nucleate.
Beginning with the binding of TFIID and extending through the addition of the PolyA tail, please...
Beginning with the binding of TFIID and extending through the addition of the PolyA tail, please outline the entire process of transcription in eukaryotes. Be sure that you address the transcription factors, binding of RNA Polymerase, the modifications made to the mRNA as transcription is occurring, the CTD tail and the phosphorylation patterns and what significance those have, and alternative splicing.
Briefly describe how the formation of the following elements occurs in stars. What type of star...
Briefly describe how the formation of the following elements occurs in stars. What type of star is needed for the formation of each group of elements? a) Helium b) Carbon c) Oxygen, Neon, and Iron d) Tin and Uranium
What features of the binding site hinder oxygen binding to Hb? What feature of the binding...
What features of the binding site hinder oxygen binding to Hb? What feature of the binding site facilitates oxygen binding to Hb? Explain the Bohr effect using the theory of allosteric modulation of oxygen binding to hemoglobin.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT