Contracts
The existence of a contract is determined by a set of principles set by the contract law. For example, an agreement should be legal, and the parties must have agreed to the terms before signing. Consideration is always made to ensure that the contract is signed after mutual consent. Generally, an enforceable contract has to meet five essential elements that include the offer, capacity, acceptance, consideration, and mutuality of obligation. However, one or more parties in a contract may fail to honor the agreement leading to breach, which calls for various remedies. An enforceable contract should adhere to the basic elements so that the chances of a breach are minimized and that the available remedies can be applied.
I once entered into a rental agreement for one year at a certain suburban area, and the contract was a typical example of an enforceable contract. A rental agreement is one where a tenant agrees with a landlord to pay an agreed rent amount at specified periods throughout the contract period. The two parties involved in a rental agreement are the tenant and the landlord. The contract was in line with the basic principles of an enforceable contract, and I was aware of the consequences that would befall either party in case of failure to honor the agreement (Belikova, 2019). The contract specified that the landlord was not obliged to provide possession of the premises immediately after the signing of the contract. However, rent was to be paid after possession of the promises has been guaranteed. Also, the tenant was allowed to cancel the contract if the possession of the premises was not provided within thirty days after signing the contract. Moreover, the contract was designed to go in line with the basic principle of a contract.
A contract is said to be enforceable if it is designed to adhere to the five basic principles of the contract law. First, a contract should have an offer, which should either be verbal or written for an action to be taken or a party to refrain from action according to some specified terms. The rent agreement specified that I was supposed to pay rent at the end of each month. Also, I was required to deposit some amount as a security to ensure that I honored the agreements of the contract without failure. Also, a contract is expected to have acceptance terms that are witnessed through signing. Both parties must accept all the terms of the contract before signing. In the rental agreement, the acceptance was in terms of the specified terms such as the rent payment date and the restrained actions. Moreover, an agreement should not be forced or be based on hidden terms.
An enforceable contract goes on to adhere to more principles associated with the value of the parties, the mutuality of the agreement, and the capacity of either party. The consideration principle defines the value that either party brings into the contract (Belikova, 2019). For example, a tenant is expected to pay rent for using the landlord’s premises. On the other hand, the landlord provides the tenant with the premises. Also, the mutuality of agreement is considered in any enforceable contract. In case of a conflict, a court is involved in determining the mutuality consent. In the case of my contract, I had the authority to cancel the contract if the premises were not accessible within thirty days. Also, the landlord had the authority to terminate the contract if I was unable to raise the agreed rent amount. Usually, an enforceable contract is based on the principle of capacity. The parties are required to be competent enough to agree to the terms of the contract. For example, the terms in my rental agreement were only signed after an explanation from the landlord. Moreover, an enforceable contract may be subject to breach, where the necessary remedies are taken.
Breaches are common where contracts are involved since some terms may become difficult to keep throughout the term. Various types of a breach can occur in the event of a contract where either one or all the parties fail to adhere to the terms agreed in the contract at inception (Ganglmair, 2017). In the rent agreement, for example, a breach may occur if the tenant fails to pay the agreed rent. Also, the tenant may, without the knowledge of the landlord, host more than one family on the premises against the requirements. However, the breaches can be mitigated by taking the necessary remedies. For example, the tenant is required to pay a deposit to cover the risk of damages in the event of a breach. Also, the tenant may sue the landlord is an eviction is done unlawfully.
In sum, a contract is deemed enforceable if it adheres to the five basic principles specified by the contract law. An example of an enforceable contract is a rent agreement where the tenant and the landlord are the parties involved. The occurrence of breaches is common and can be mitigated by taking the necessary remedies.
References
Belikova, K. M. (2019). Evolution of basic doctrines and principles of contract law in Europe. Amazonia Investiga, 8(22), 173-182.
Ganglmair, B. (2017). Efficient material breach of contract. The Journal of Law, Economics, and Organization, 33(3), 507-540.