This paper presents a discussion on factors that are critical in the formation of a contract and all the necessary information regarding the topic. A sample contract is given that is used as the basis of the discussion. Hereby is the contract; This contract is made between John and Jude for the sale of that parcel of land here referred as Land Reference, situated Northwest of Carolina, on this date of 16th November 2012. Whereas John is the registered Proprietor of the land, he wishes to sell the parcel to Jude, the purchaser, for a sum of Two Hundred US Dollars.
From the above contract, the parties involved are John, the seller and Jude, the buyer. In this case, there are no third parties. The requirements for formation of a contract includes; offer and acceptance. This means that one party offers to do something and the other accepts as such. In the example, John has offered to sell his land at the said amount. Jude on the other hand has accepted to pay the amount, thereby offer and acceptance. Consideration is something of value given by the promisor to the promisee. The payment to be made by Jude towards John constitutes consideration. Both parties are presumed to have the capacity to enter into contracts. Such would mean that they are of the required ages and of sound minds. The other requirement is legality, which means that any agreements must confirm to the law of the land.
This is a bilateral contract since it involves a promise by each party. The Buyer to pay the sale price while the seller is to deliver rights of ownership to the buyer. A possible defense to either party in this contract can be mistake. For example where the land turns out to be of another person. In this case, the buyer should be compensated. This contract takes the form of writing and attested. This is because of the legal requirements that prescribe for such. The aim is to protect the parties in case of breach by either of them. Discharge of a contract means that the parties are released from the responsibilities and rights. This can be through legal action, performance, frustration of the contract, agreement between the parties or repudiatory breach. One breach can arise if the buyer decides not to pay the agreed amount. The seller has a right to sue. A remedy to the party being sued can be undue influence whereby this party was coerced to enter into such an agreement. Such a business contract can be completed through technology. The agreements can be typed and then send to each party to read and sign. Then scanning of the documents is done and circulated to those concerned. Payment of consideration can then be done through electronic transfer. This therefore shows that technology can play a role in execution of contracts.