This paper presents a discussion of factors that are critical in the formation of a contract. In addition, all the necessary information regarding the topic is examined. The contract is agreed on the14th day of November 2012 between Jane and James. James claims that he is a qualified driver and accepts to be driving Jane every day to and from school for one year commencing on 21 December 2012. Jane offers to pay James a monthly salary of 200 US dollars. The termination of the contract can be effected if either party gives 15 days notice.
The parties to the contract are Jane and James. There are no any third parties to this contract. The requirements for the formation of a valid contract include an agreement, which demands that parties must consent to a deal. Acceptance is another requirement. In this case, it is upon James, the driver to accept the offer. Consideration is another important factor. Consideration relates to the value the promisor gives to the party that accepts the offer. The consideration under this contract is the salary to be paid to the driver, which is 200 US dollars. Capacity is another critical element. The parties to any contract must be capable of contracting. Thus, the contracting persons should be of sound mind, mature or not banned by law to be party to such agreements. The implication is that the business must be legally sanctioned. Otherwise, the contract would be void.
The agreement is a unilateral one since Jane makes the promise to James. James has not made any undertaking. In such a contract, one party makes a promise. Either party can cite a mistake in entering into any agreement with the other (McKendrick, 2005). A mistake could be fact or error based. Discharge of this contract can be effected through performance, whereby the agreed act is executed to the satisfaction of every party. Breach could occur also occur if one party fails to fulfill his/her part of the promise. The offended party can sue for damages. A contract is discharged/effected after gaining both parties’.
An offended party can seek redress in case of a breach of contract. This contract cannot be effected through technology. This is because driving is a physical activity that must be executed manually. However, other parties to the contract can be performed using technology. Payments to the driver can be done electronically to his account.