Contract law principles and applications

Contract Law

In modern society, contracts have become an integral part of determining who is responsible for performing various actions in an agreement. It spells out the terms, conditions and how each party must behave in order for it to be enforceable under the law. To fully understand the way that this is occurring requires carefully examining key issues, the offer / acceptance / consideration, the different points-of-view and ethical issues. Together, these elements will offer specific insights that are showing how they work and their effects on the various parties. (Andrews, 2011) (McKendrick, 2012)

Were there any issues, legal or otherwise, faced when entering into the contract?

The biggest issues faced when entering a life insurance contract are the implications for family members and the financial burden on them. To decrease the risks, a $100 thousand whole life policy was purchased. The biggest challenges (for the policy owner) are confronting immortality and what will happen to their loved ones when they pass away. While the insurance company, is profiting from taking this risk. (Easton, 2007) (Andrews, 2011) (McKendrick, 2012)

What are the offer, acceptance and consideration? Be sure to define these legal concepts before identifying them in your specific example.

An offer is when a proposal is made from one party to another. In it, they each agree to perform specific actions as a part of the contract. Acceptance is when the other party concurs and will meet these obligations. Consideration is where either or both sides are studying the agreement and if this is something they want to go into. For example, in an insurance contract, the offer is the actual application submitted by the customer. Consideration is the underwriting process and the risks for covering this individual by the insurance company. Acceptance is when the policy is issued and both sides agree to the terms / conditions / riders. (Easton, 2007) (Andrews, 2011) (McKendrick, 2012)

Would you have a different point-of-view entering into the contract now with your increased knowledge of contract law? Why or why not?

Yes, there will be different points-of-view when entering a contract. This is because these agreements are enforceable for a specific length of time. It is dependent upon both parties fulfilling their obligations. When this happens, it means that they are compelled to meet these conditions. For some people, this is challenging, with their lives are constantly changing. As a result, they need to consider the impact it will have on them and if this is something they are prepared to follow. (Easton, 2007) (Andrews, 2011) (McKendrick, 2012)

Identify ethical issues that exist in your example, if any. If your scenario did not present any ethical issues, provide support to indicate this.