Question

What is a Contract? What is Breach of Contract? Explain. Quote examples.

Answer 1

A contract is an agreement between two private parties that creates mutual legal obligations. A contract can be either oral or written. However, oral contracts are more challenging to enforce and should be avoided, if possible.

Some contracts must be written in order to be valid, such as contracts that involve a significant amount of money (over $500). Contracts are part of everyday dealings in all aspects of life. Therefore, it is crucial to understand the rules governing them to ensure you have a valid contract.

All valid contracts must include the following elements to be enforced:

An offer (I will pay you $1,000 for 1,000 cupcakes);
And acceptance of the offer presented with (Other person accepts $1,000 for 1,000 cupcakes);
A promise to perform (Other person says they will perform);
A valuable consideration ($1,000);
A time or an event of when the performance must be made (1,000 cupcakes exactly 2 weeks from now);
Terms and conditions for the performance (The cupcakes must be chocolate and have vanilla frosting); and
Performance (The 1,000 cupcakes are delivered and the person is paid $1,000).
On top of that, the courts will not enforce certain contracts unless they are in writing. These contracts fall under the Statute of Frauds and must be in writing. They include marriage contracts, contracts not to be performed within one year, interest in land contracts, paying decedent’s debt guarantees, and sale of goods contracts over a specific amount.

Most contracts are governed by the state statues and therefore it is important to consider the local laws when dealing with a contract issue.
A breach of contract is when one party breaks the terms of an agreement between two or more parties. This includes when an obligation that is stated in the contract is not completed on time—you are late with a rent payment, or when it is not fulfilled at all—a tenant vacates their apartment owing six-months' back rent.
Common examples of breach of contract include failure to deliver goods or services, failure to fully complete the job, failure to pay on time, or providing inferior goods or services