¶ … enforceability of a contract as well as several defenses that will void a contract. In the case of Furniture World against Bryant Remodeling, Bryant argues that they had the right to subcontract work due to the fact that they were overwhelmed with work. By applying and analyzing the legal elements of a contract and the defenses thereof,...
¶ … enforceability of a contract as well as several defenses that will void a contract. In the case of Furniture World against Bryant Remodeling, Bryant argues that they had the right to subcontract work due to the fact that they were overwhelmed with work. By applying and analyzing the legal elements of a contract and the defenses thereof, Furniture World is likely to win their case against Bryant Remodeling. A contract is made up of six legal elements including offer, acceptance, objective, mutuality of obligation, consideration, and competent parties.
There are two types of contracts; bilateral contracts are a "promise for a promise" and a unilateral contract is a "promise on an act" (Cross 2007). An offer is defined as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed," the "offeree" (Treitel 2007). Acceptance of the offer must follow the "mirror-image" rule whereby the two parties agree on identically specific terms; rejection allows for counter-offer.
Offers and acceptances are limited to the parties that enter into a contract and the power cannot be transferred. The objective of a contract must be for a legal purpose; a contract that is illegal in nature is not enforceable by law. Mutuality of obligation refers to the parties' "mutual agreement and assent to the expression of their argument" ("Legal Elements of a Contract"). Consideration defines the terms of the agreements made by the parties.
The law also stipulates that in order for a contract to be valid, the parties entering into must be competent and authorized to enter into the contract ("Legal Elements of a Contract"). Defenses to a contract are mistake, incapacity, duress, undue influence, unconscionability, misrepresentation or fraud, and frustration of purpose.
A breach of contract occurs when performance is due but has not been fulfilled; an anticipatory breach occurs when the parties enter into an agreement in which one of the parties does not intend to comply with their end of the deal. Legal methods of voiding contracts include action by both parties through revocation, rejection, counter-offer, and full performance. Methods of voiding contracts by law include lapse of time, destruction, death or incompetence, and/or illegality.
When entering into the contract with Furniture World, Bryant Remodeling did so in good faith and competency, under no duress, intent to fraud, or a frustration of purpose. Bryant Remodeling fully believed that they would be able to fulfill the terms of the contract as stipulated by Furniture World, but because they did not foresee their future workload.
Though Bryant Remodeling has the right to subcontract to Kreeky Construction, it should have been stipulated in the contract between Furniture World and Bryant Remodeling that Bryant Remodeling had the right to hire a subcontractor if they felt it necessary. Additionally, Bryant Remodeling argues that he could have discharged the contract due to commercial impractibility. Again, unless it was specifically stated that the contract could have been voided due to commercial impractibility, Bryant Remodeling had an obligation to fulfill the contract.
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