Identify components of a typical contract - Essay Example

Identify Components of a Typical Contract Introduction A contract refers to an accord that diverse parties enter into freely with the aim of forming a legal obligation. A contract may either be verbal or in writing. A contract can also be defined as an official guarantee or duty that an agreement will or will not happen (Miller, 2011). The phrase ‘guarantee’ can be used as an official synonym in favor of a contract. This paper will address a potential contractual defective scenario. The scenario at hand is the agreement between Jud Wheeler and the Krause Company.

The company believes that Jud wheeler bought the 10 acre piece of land from them at a relatively lower price than the actual value of the land. Contract law is set on the principle which states that agreements between individuals must be reserved. Literally, it stands for maintaining a set of agreements (Ewan, 2005). In order to take either side of the two parties present in this scenario, it is necessary to understand a significant element of a contract as stated in many jurisdictions. The most significant element of a contract states that if one party sets a bid for an arrangement, then another party has to accept the accord.

This can be referred to as an arrangement of meeting of the minds or wills of diverse sides (Ewan, 2005). The final accord is contested by the parties involved. The winner of the contest has the final say in the accord. The observable doubt is that a law court cannot interpret the minds of the parties involved. This leads to the contract being judged without bias, with only limited space for questioning the contract’s intention. There ought to be confirmation that the parties had both, from an objective view, engaged in a conduct that made clear their agreement.

The confirmation should lead to a contract being created if the sides have arrived at such a state. An objective view means that it is only essential that an individual gives the sense of accepting or offering contractual conditions. This condition should be in view of a realistic individual, who in reality looks to create a legible contract (Barnett, 2003). Jud Wheeler bought the 10 acre piece of land from Krause Company at an agreed price that the two parties settled. The Krause Company later came to the understanding that it had sold its land at a low value which it thought that the buyer, Jud Wheeler, had enticed them to sell.

The agreements of the two parties go with the element of a contract that states if one party sets a bid for an arrangement, then the other party has to accept the accord. Jud Wheeler came up with a proposal of the price of land, and Krause Company, which was willing to take part in the contract, agreed on the price reached. It does not matter whether the price was lower or higher than the significance of the land itself. The Krause Company had already signed a contract with Jud Wheeler. This already makes the transaction legal and lawfully legible (Barnett, 2003).

Conclusion Jud Wheeler, by all means, holds his ground as the rightful owner of the 10 acre piece of land. Krause Company should blame itself for not investigating deeply on the price of their land before selling it to Jud Wheeler. In view of a legal analyst, this rates the transaction as a quickly settled deal which one party wanted to gain funds through a fast means. The other was carrying out its expected duty of paying for the product. ReferencesBarnett, R. (2003) Contracts. New York; Aspen Publishers.Ewan, M. (2005).

Contract law - text, cases and materials. London; Oxford University Press.Miller, L. (2011). Business law text & exercises. (6th ed.). George Town; South-Western, Cengage Learning.