Quiz 7: Nature and Classification

Business

Standards of contract: Yes they do have a contract this can be concluded because both the parties in this case Joli and Kerin had made an agreement to carry out a particular act in the future. The aspect of intention plays an imperative role for the determination of whether a contract has been formed or not. The determination of the intention is done by objective theory of contracts. The contract in this case was formed; it can be said as various elements were fulfilled such as for the formation of a contract an agreement has to be made that includes an offer and an acceptance. Where the offer is made by one party and the second party accepts to the offer made by the first party. Accomplishment of some of the objectives should be legal as this is also an important aspect for the formation of a contract which was there in the above case.

Contract: Enforcement of an agreement in the court is known as a contract. The formation of a contract is done by either two or more than two parties when they agree to either carry out or abstain from carrying out some activities in the present time or in the future. Objective theory of contract: Designing of the contract law is done for ensuring stability and the power to predict, this is done for both the buyers as well as the sellers in a market place. The laws concerning to the contract guarantees that the promises the parties have made will be completely enforceable. Various possible problems that take place in the business enterprises are evaded by enforcing the contract laws. In the determination of whether the formation of a contract has taken place intention plays an important role. The determination of the intention is done through the objective theory of contracts and not through the beliefs that a party has or through the personal or the subjective intentions. There are certain objective facts which have been listed below: • On entering into a contract what was said by a said by a party. • The appearance or the actions carried out by the party. • Situations that concerning a transaction.

Agreement: An understanding between two or more persons on a mutual basis leads to a contract. A contract has many kinds of theory to determine the facts and purpose of the contract. One of such theory is Objective Theory of Contract. Contract: It is an agreement that is entered into by two or more parties voluntarily that can be enforced in court. It is made to perform a promise in the future. A contract include two parties, i.e. promisor, party which binds the other party to do or not to do certain acts and promise , who accepts the offer of the promisor and promises to do or not to do certain act in return of some consideration. Objective Theory of Contact: When a contract is formed its purpose is of prime importance. This purpose is decided by what is called objective theory of contracts. Under this, the concept for entering into a contract is determined by facts that can be interpreted by a reasonable person, instead of the party's personal intensions.

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