A contract is a private law of business that makes it possible to count on supplies, services and money (Jennings, 2016). It is developed by the transacting parties and the laws are enforceable by courts of law. Through the contracts, businesses are able to grow because there is minimal wastage of resources. The first source of contact law was common law and its inadequacies led to the second law which is the Uniform Commercial Code (UCC).
The differences in the common law in different states of America led to the use of UCC. Its introduction brought about uniformity and made it easier for businesses to do business across different state lines. The different types of contracts include executed, executory, unenforceable, void, voidable, express, implied, bilateral and unilateral. Some of the factors that bring about the existence of the different types of contracts are the number of parties involved, the formality, whether the contract is written or signed and the legality of the business engagement (Beatty & Samuelson, 2016).
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A contract is formed when two parties of sound mind agree to do a transaction in strict adherence to the laws of the land. The elements of a contact are offer, capacity, mutual obligation, acceptance and consideration. The offer becomes valid only when it reaches the offeree and its termination could either be as a result of revocation, rejection or expiration. Acceptance is an element of a contract that is done either through stipulated or unstipulated means. Consideration is another element that explains what each party gives up under the contract (Stim, 2016) .
The internet has provided an online platform for contracting and the courts have been left to deal with the issues surrounding the formation of the contract. The new rules about cyberspace contracts focus on whether the parties have full knowledge about the terms and whether they have voluntarily accepted those terms. Once a contract is written, none of the parties is expected to contradict its terms.
References
Jeffrey F. Beatty, S. S. (2016). Business Law and the Legal Environment, Standard Edition. Boston: Cengage Learning.
Jennings, M. M. (2016). Business: Its Legal, Ethical, and Global Environment. Boston: Cengage Learning.
Stim, R. (2016). Contracts: The Essential Business Desk Reference. Berkeley: Nolo.
