What is a Contract

¶ … legal doctrine of consideration asserts that for a contract to be valid, something of value must be exchanged. In other words, there must be a change in the state of both parties (Stim 2017). A good example of this is the purchase of a car. The seller gains a specified amount of money while the buyer acquires a car. Although this may seem obvious and not need to be specified as one of the legally essential terms of a contract, it is useful in outlining what a contract is not.

For example a contract cannot be drafted which demands that the individual take actions which he or she is already obliged to perform (Stim 2017). Parents do not have to enter into contracts with their children's teachers to demand that teachers educate their students. Gifts with "no strings attached" are not contracts; once again, bestowing a charitable donation does not necessitate a contract (Stim 2017).

If every exchange in human existence could constitute a contract, this would be extremely legally cumbersome and this also ensures that agreements which were intended to be non-contractual, non-economic exchanges are not in danger of being interpreted as such, such as the gift of a car to child versus a purchase agreement. The child cannot then complain about a contract violation if the gifted car was not what he or she wanted. Finally, the notion of consideration prevents non-enforceable contracts from being drafted.

"For example, the laws in Maria's state prohibit firing an employee for refusing to sign a noncompete agreement. Maria signs one anyway, under threat of losing her job. The agreement is unenforceable because Maria's employer cannot do what it promised (or threatened) to do" (Stim 2017). Once again, nothing of value is being exchanged in such a contract because Maria does not have to give up her ability to work for another employer within the industry and thus her employer cannot gain this benefit from her. Q2.

Analyze the process a couple usually goes through when getting engaged by the terms used for contracting. Label each significant act or step according to the contractual concept it satisfies and explain. Contracts do not have to be written, so the steps of entering into an agreement to become engaged could be viewed as a legally enforceable contract as follows: Offer: The proposal of one member of the couple to the other party to enter into marriage would constitute the offer. In this case, the offer is verbal, not written.

Consideration: Both parties make a change in their state so there is consideration and both members of the party gain something of value (i.e. one another) and also give something up (being single). "Consideration is the value that induces the parties to enter into the contract" ("Elements of a contract," 2017). Unlike a gift, both parties offer something of value to the arrangement ("Elements of a contract," 2017). Acceptance: An engagement requires the consent of both parties. Merely asking someone to marry you does not mean the other party must.