Entering an enforceable contract requires sufficient understanding regarding the agreement’s characteristics, ensuring the success of the endeavor. To avoid negative ramifications and create a legally binding agreement that will benefit both parties, it is essential to address each element of the contract and discuss a potential breach of the arrangement. As defining some of the attributes might become challenging if an incorrect agreement is created, the contract should be thoroughly evaluated prior to signing (Rogers, 2012). In this work, a personal example of entering an enforceable contract, namely a rental agreement, will be discussed, exemplifying its connection to the five elements of a legal arrangement, possible breaches, and subsequent remedies.
Committing to a rental agreement was a significant instance of a legal endeavor for me, as it required a deep understanding of the responsibility delivered. In this arrangement, I agreed to rent an apartment property from the owner of the flat, who would receive fixed monthly payments, as well as a monthly determined sum for the water and electricity bills. It is noteworthy that another party, namely a rental agent, was included in this agreement, receiving a portion of the 1st monthly payment as a reimbursement for the services provided. After that, the only financial transactions were to be conducted between the owner of the property and me, thus excluding the agent from the subsequent participation in the contract.
The arrangement described perfectly represents the five essential elements of an enforceable contract, upholding the legality of this endeavor. First of all, the offering factor was preserved in the arrangement, as the owner of the rented property presented me with an invitation to enter into a legally binding contract (Rogers, 2012). The invitation was submitted in a written form, ensuring its future credibility, and included the terms to be fulfilled by all of the interested parties. The acceptance requirement was also enforced, necessitating the signatures of all involved individuals in order for the agreement to become enforceable.
The renting activity and the transferred monthly payments acted as the consideration, allowing the parties to benefit from the arrangement. As a tenant, I was granted authorization to occupy the named property using the items present on the premises. In return, I was obligated to pay a monthly fixed sum, as well as agreed to calculate and transfer an additional fee for the amount of water and electricity utilized based on the relevant tariffs (Furth-Matzkin, 2017). Furthermore, I also covered the initial services of the rental agent, who provided the contract and ensured its credibility.
Another issue connected to the creation of a legally binding agreement is the legality requirement. According to the current rental property regulations installed by my government, any willing parties might participate in the creation of an enforceable contract, given that the owner legally possesses the apartment (Furth-Matzkin, 2017). Additionally, the involved tenant must obtain the capacity to enter a legal agreement (Furth-Matzkin, 2017). As both of these demands were met, the signed contract demonstrated the legality concept.
Finally, the notion of capacity is an essential factor for establishing a proper enforceable agreement. In my example, each party involved had a legal capacity to agree to the presented terms, demonstrating a lack of limited mental abilities, being over the age of 18, and entering the arrangement willingly (Rogers, 2012). Therefore, all of the five elements of an enforceable contract were fulfilled in the rental arrangement discussed, making it a legally binding agreement, which could be enforced after the signing procedure.
Given the legality of the contract, it is possible to consider the circumstances of a breach of the commitment. A possible violation could arise from payment neglect, for instance, if the tenant does not transfer the appropriate financial sum at the stated date, contravening the terms of the agreement. In this scenario, the owner is capable of terminating the arrangement, refusing to provide further rental services for me (Mungan & Seidenfeld, 2015). Likewise, if the property holder decides to revoke the contract lacking any instances of violation from my side, it will be an illegal action that could be argued in court. An appropriate legal punishment for the owner and compensation for the tenant could be the result of such action.
A potential remedy for the first breach could be additional communication, for instance, asking the property holder to extend the payment period. Therefore, as a result of a spoken agreement, the tenant fulfills their part of the contract, and the owner is presented with the compensation. Considering the second case, it would be possible to discuss reimbursement for the tenant, a monetary recompense, as the circumstances of annulment do not adhere to the terms of the contract.
To conclude, an example of an enforceable agreement, namely a rental arrangement, was discussed in detail in this paper. According to the five elements of a legal contract analyzed, the presented agreement is legally binding, as it adheres to the requirements of an offer, acceptance, consideration, legality, and capacity. The availability of interested, capable parties, an exchange of a living arrangement with the monetary compensation, and the presence of mutual consent preserve the legality of the contract. Furthermore, possible breaches of the agreement might be either mitigated by the parties, suggesting potential remedies, or further debated in court.
References
Furth-Matzkin, M. (2017). On the unexpected use of unenforceable contract terms: Evidence from the residential rental market. Journal of Legal Analysis, 9(1), 1–49. Web.
Mungan, M. C., & Seidenfeld, M. (2015). Investments to make threats credible, rent-seeking, and duress. Supreme Court Economic Review, 23(1), 341–351. Web.
Rogers, S. (2012). Essentials of business law. Bridgepoint Education.