Question

Kento purchased a refrigerator–freezer from the Elway Appliance Shop for $900.  The purchase was made over the phone, after which Elway sent Kento a letter thanking him for the purchase of the refrigerator-freezer. Before the appliance was delivered to him, Kento telephoned Elway and canceled the purchase.  Elway then sued for damages, and Kento raised the defense that the contract was unenforceable.  Elway produced a copy of the letter that it sent Kento.  Does this letter help Elway to win the case?

Answer 1

According to the law, a contract may be oral or written, if it satisfies all the six essential provisions to an enforceable contract.

The essential provisions of an enforceable contract are:

1. An offer
2. An acceptance to the offer
3. Competent parties who have legal capacity to enter the contract
4. Lawful subject matter
5. Mutuality of obligation
6. Consideration

Offer: An offer is an expression of willingness by one party to contract on certain terms with another party with the understanding that the contract will become binding when accepted by the person to whom it is offered. An offer may be made in different ways, such as in a letter, an email, or even your behavior, so long as it conveys the basis on which the offering party is willing to contract. An offer should consist of: (1) a statement of present intent by the offering party to enter into a contract; (2) a specific proposal that is certain in its terms; and (3) a communication that identifies the person to whom the offer is made. If any of these elements are not present, an offer has not been made.

In this case, Kento made an offer to Elway appliace to purchase a refrigerator and it satisfies all the conditions, hence, the first provision is fulfilled.

Acceptance: Acceptance is a final and unqualified expression of consent to the terms of an offer. An offer may only be accepted by the person to whom it is made unless an agent is authorized to accept on behalf of that person. In addition, an acceptance must be made in the manner requested or authorized by the offering party.

In this case, Elway appliances accepted the offer made by Kento and satisfies the conditions, hence this provision is also fulfilled.

Competent Parties: Parties to a contract must be competent to enter into a contract. In general, most individuals are deemed to have the capacity to contract unless the person is a minor, incompetent or insane, or drunk or drugged when entering into the contract.

In this case, both the parties, Elway appliance and Kento are competent enough to enter into a contract, hence this condition is also fulfilled.

Lawful Subject Matter: In order for a contract to be enforceable, its subject matter cannot be prohibited by law or violate public policy.

In this case, the subject matter of the contract is lawful as it is not prohibited by any law or it does not violate any public policy, hence this provision is also fulfilled.

Mutuality of Obligation: In order for there to be an enforceable contract, the parties must have a common intention or a meeting of minds on the terms of the contract. The parties must agree to the same thing, in the same sense, and at the same time. If one party to a contract has been fraudulently misled about the terms of the contract by the other party, the contract is voidable.

In this case, the obligation was duly accepted by both the parties, Kento agreed to pay the amount of $900 and Elway appliances agreed to supply the refrigerator- freezer, hence this provision is also fulfilled.

Consideration: Consideration is a very important element of an enforceable contract. Consideration may be money or a promise. In addition, consideration may consist of a restraint from suing on a claim that may be part of a legal dispute.

In this case, as soon as Kento received the letter of thanks from Elway appliance, he must have replied with a written consent or must have communicated to Elwyn appliance that he does not want the fridge and he agrees to pay the cost if any, associated with the transport of the fridge so far.hence, this provision is also fulfilled.

Therefore, the contract legally enforceable as it fulfills all the provision of a legally enforceable contract and hence, Elway can sue Kento in this case to recover damages from him.