It\'s time to delve into contract law, at least momentarily. Contracts are integ

Question

It's time to delve into contract law, at least momentarily. Contracts are integrated into our everyday life whether we realize it or not. If you make a purchase at a store, you are creating a contract for the purchase of said items in return for cash, check or credit. While this may not be a traditional type of contract consisting of a written document that all parties sign, this is nevertheless a contract.

Much the same, we deal with contracts on a day-to-day basis in the business world. But, can everything be contracted? Or are there certain contracts that are void or voidable (hint, hint)?

Write a 2-3 page paper using proper APA formatting. Within this paper you are asked to analyze the types on contracts that are void and voidable as well as why they are forbidden in the business world. Below are some ideas to help get you started:

Compare and contrast void and voidable

Against public policy

One-Sided

Minor exception

Mental Capacity

Illegal Contracts

Explanation / Answer

A contract is an agreement which can be enforceable by law. There can be seevral types of contracts such as void contract, voidable contracts , illegal contracts etc.

Void contract is one which cannot be enforced by law because the contents of the agreemnet are illegitimate or violate the public policy. A void contract is deemed to be non existent in the eyes of law and cannot be enforced by either party. Example of void contract could be agreement of supply of illegal drug between drug supplier and drug dealer/mafias. A voidable contract on the other hand is something which is considerd legal and enforceable initially but it can be rejected by one or more parties to the agreement due to presence of defects such as failurr to disclose information or coercion etc.

Let us see the following examples:

A)Against public policy : Contracts which cause harm to society at large or are immoral are considered against public policy and hence are void. The term public policy means policy of law. So agreements entered to commit a crime or dealing with enemy countries are considered against public policy and hence they are not enforceable and void.

B)One sided contracts: One sided contracts are such that they are strongly in favour of one party usually the party with more power and the agreement is framed in a manner which is very unfair to the other party. For example when contracts are entered into between parties where one party exerts undue influence over other or has higher barganing power over other then in such instances the contracts become unenforceable and hence void.

C)Minor exception: Contracts entered into with minors are generally voidable meaning minors can move out of the contract. It means the contracts are enforceable but can be voided by the minor. But there are certain contracts which are not voidable such as medical necessities supplied which have to be enforced by the minor and hence are not voidable.

D)Mental capacity: Contracts entered into by mentally incapacitated people are considered void ab initio. The courts consider that these people do not have the capacity to give informed consent and hence any contract entered into by them are void and not enforceable.

E)Illegal contracts: The contracts which are illegal are again void contracgs since they cannot be enforced by the court of law and are considered to be non existent.

Hence we could see void contracts are something which are not enforceable by law whereas voidable can be enforced by the option of one party.

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