Contracts No. 1: Judge for yourself - A critical incident regarding contract formation, conditions, performance, and breach
The law provides an opportunity for people to craft the rules that control their relationships— business or otherwise. This is the essence of contract law. Once a contract has been formed, it is generally accomplished without the aid of the court as most feel a moral, if not legal, obligation to perform. What happens when the agreement is not in writing, but based on trust, past practices, and general rules in the applicable business? Is a valid contract formed? Are the parties bound? Or, are they able to walk away? This incident is based upon an actual lawsuit. The dispute arose when a law firm hired a lawyer, but failed to pay a commission to the placement service that allegedly introduced the lawyer to the law firm. In this incident students will assess the elements of contract formation, conditions to the formation of a contract, and breaches.
- Analyze and summarize the types of contracts that exist, including the elements of a contract
- Identify and explain conditions to a contract and distinguish between conditions precedent, conditions subsequent and concurrent conditions
- Recognize and describe a breach of contract
- Explore the important differences between express and implied contracts