Fundamentals of Business Law
The four elements of a valid contract are Acceptance, Consideration, Contractual Capacity, and Legality. Theelements that need to be clear and present in a transaction start with a solid agreement between the people that is making the contract. Most of the contract start with a proposal that is expect to beaccepted and should have the target to develop a legal relation. The main purpose is to be recognized from both parties as a legal agreement. Either group or person should respect each other sides in adegree to create a serious environment around the agreement. The intention is to exchange a product for money. The expectation is to receive the money as sooner the product is given to the otherparty. The acceptance of the offered product and the consideration to comply with the agreement gives the validity to the contract.
The objective contract theory involves two parties, one isthe proposal and the other will be the receiver. When the receiver accept as true a proposition for business and his/her accepts such proposition, a contracting transaction will be done. The objectivetheory is no more that a sensible action between two parties with a fairness intention. If any doubt exist, that the transaction is fair and has real meaning from both parties the transaction isconsiderate like it never exist. In our assignment particular case, John D. R. Leonard intention was to take the advantage of a commercial that anybody knew that was not a true offer. It is clear in anyrational human mentality that a $23 million jet will not going to be gives as a present from any firm. It is not a fairness intention involve so such deal could not exist.
The objectivetheory is applicable in all jurisdictions of the country even that they are bias in some aspect in the American Law. The argument involved here is the intention of a party to keep looking for a...