For any contract to be legally valid and enforceable contract, both the parties

Question

For any contract to be legally valid and enforceable contract, both the parties should have the valid capacity to enter into the contract besides the presence of the other necessary elements of a contract such as specifics, valid consideration in a contract, legal and proper form (as it involves huge sum). Here, the city of Argyle did not have the capacity as per the provisions of the state constitution. It means that the city of Argyle was incapable to enter into the contract with the B.L Nelson and associates. Hence, the contract will be illegal and void. Therefore, it cannot be enforceable in the court of law.
Here, the city of Argyle should verify their capacity before entering into a contract, while the other party should also verify it with the relevant documentary evidence before the formation of the contract. It makes B.L Nelson and associates to be negligent before entering a contract with city of Argyles.

Explanation / Answer

In a paragraph is two answer the following case: "B.L. Nelson & Associates, Inc., entered into a contract with the city of Argyle to design and construct a sanitary sewer collection and treatment facility for the city. The city attempted to get out of the contract by citing certain provisions of the state constitution. These provisions made it illegal for the city to enter a contract for services if it did not have the money to pay for these services. Because the city did not have the funds to pay Nelson, it argued that the contract was illegal and therefore void. Was the city correct? Explain. [B.L. Nelson & Associates, Inc. v. City of Argyle, 535 S.W.2d 906 (TX).

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.