Respond to each classmate 100 words a piece.
This is the question they had to answer. (Discuss the relevance and importance of a contractual relationship. Identify the various types of contracts that are required to be in writing as discussed in the text.)
In order for businesses to succeed, promises must be kept. This is done through contractual relationships, or contracts. Contracts can be used for situations such as vehicle purchases, manufacturing, employment, etc. A contractual relationship is a legal relationship between two or more parties. Several key elements make up the foundation of the contract. Those are: legal enforceability, a written or oral agreement, a relationship of exchange, and a minimum of one term or promise. Once both parties reach an agreement on the terms of the relationship, it then becomes a legal a contract.
Different situations call for a certain type of contract. There are many types of contracts, some are simple verbal agreements, and some are written and signed under notary. Types of contracts that someone may experience are bilateral contracts, unilateral contracts, express, implied, void, voidable, unenforceable, executed, and executory contracts. Oral contracts are very difficult to enforce because there is no accountability of the offer, consideration, and acceptance.
There are times when contracts cannot exist solely on the basis of an oral promise. All agreements that fall under the statute of frauds are required to be written, in order to be binding. Contracts that typically fall under the statue of frauds in common law are contracts for the sale of real property, contracts that cannot be performed within one year, and contracts to pay the debt of another. Furthermore, according to the Uniform Commercial Code, the sale of goods that costs in excess of $500 must have a written contract, in order to be enforceable. Once the contract is in its final written form and complete, parties are not allowed to contradict the terms with evidence of negotiations or verbal agreements.
Contracts are very important to keep parties obligate to perform promises. Without a contract, there is no way to hold someone accountable to perform an act. A contract is a set of promises made by a party to another party, and it is supported by law. There are many kinds of contracts but the most common ones are Bilateral and Unilateral. Bilateral contact is one party makes a promise in exchange to another promise. For example, you promise you will pay the bank with interest if the bank lets you borrow some money. Therefore, nobody is performing a service, but both parties have made promises to each other, so this contract is supported by law. A bilateral contract is defined as promise and service. One party makes a promise and the other party will perform a service. For example, you hire someone to clean your house, you are supposed to pay the person for her or his service, and the person is supposed to clean your house.
A contract can be written or oral; however, both parties need to agree. The contract can be void if there is a mistake in it. Oral contracts can be harder to enforce because the parties do not have sufficient evidence to prove that the contract was made. Therefore, the best contract is when the one is written, so both parties have proof to show if anything happens in the future or if someone wants to void the contract for an error, the contract can be void if there is a mistake.