Discussion- Chapter 13 and Chapter 18
Elements of an Enforceable Contract
The elements of a contract include; agreement, consideration, contractual capacity, and legal object. In the agreement the one who gives the contract, that is, the offeror, presents the contract before the offeree, that is, the receiver of the contract agrees to the terms and condition of the agreement. The second element of an enforceable contract is consideration where the two parties agree on what they will get out of the contract by their loyalty. The other element is contractual capacity which refers to the minimum requirements for a person to become part of a contract. Some of these requirements usually include their age, the state of mind and their overall health. The fourth aspect is the legal aspect, which means that for enforcement, the contract has to be legal and in line with the public policies.
The Statute of Frauds
The Statute of Frauds serves to provide an atmosphere of streamlined negotiations of a contract through the provision of actual evidence of the conditions stated in the contract. Conflicts that may arise over the terms of the contract are, therefore, resolved using the Statute of Frauds. It also serves the purpose of providing solid evidence about the constituents of the contract. Any other information apart from what was agreed on at the time of the bargain is therefore precluded. It provides the basis upon which the parties involved in the agreement can judge their loyalty to the contract. The Statute also makes sure that the two groups enter the contract with their full consent. This is because it provides the precautionary steps in the terms and conditions before the signing of the contract.
The types of contracts that fall under the Statute of Fraud include; contracts that preclude performance in less than a years’ time, marriage contracts, contracts that involve the settling of debts, and finally, land contracts.
An example where Parol Evidence Rule can be used is where a couple intend to divorce of the irresponsible drinking habits of the wife. The contract primarily states that if this happens the children are supposed to remain under their mother’s custody. However, Parol Evidence can be used to make the father the custodian.