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Document1 Word References Mailings Review View Help a-ay-A- ????, '?,EE3.LT Normal]TNo Spac Heading 1 Heading 2 Title Paragraph . Discuss the elements of a contract and its consequences . Discuss the discharge of a contract and its effects on the parties. Discuss the types of contract remedies, Give these two examples a try 1. John walks into a gas station, puts one dollar down on the counter, and says, a coke please 2. John walks into a gas station, puts one dollar down on the counter, and says, "a coke please" Under contract law, what has just occurred? The owner takes the dollar What type of contract has just been agreed upon? Reply

Explanation / Answer

1. Elements of the contract are the parts of the contract that must be present to make it valid and legal. These elements can be as follows: offer- made by the person who is presenting an agreement to the other person asking something esle in return, acceptance- is made for the offer given by the person by which the second person accept the offer, intention to create legal binding- the offer and acceptance does not form a contract untill it has a legal binding to it, consideration- the price paid by one party for the offer is the consideration that should be present in a contract, legal capacity- the person entering the contact should be legally capable of doing so.

If any one of these elements is missing or not followed while making a contract, then a valid contract does not form. Even if after forming the contract if any of these is not followed or any one party of the contact fails to follow the contractual obligation then that is breach of contract and based on the clauses of the contract and the law he will face the consequences accordingly.

2. Discharge of contract is the termination of contract after which the parties are no more obligated by the terms and clauses of the contract. The different reasons for discharge of the contract chould be: discharge by performance, by sustituted agreement, by lapse of time, by operation of law, impossibility of continuation, breach of contract. The effect of discharge on the parties depends on the reason for the discharge and the party which is responsible for the discharge pays the loss or goes through the legal obligation to the other party. Thus the reason and circumstances of the discharge and legal obligations related to them explains the effect of it on both the parties

3. The types of remedies in case of a breach of contract are as follows: money damages where a compensation is given to the party who suffers the loss due to the other party in the breach, restitution- is the process of restoring the party suffering the loss in the breach to the same position as they were in before the contract, rescission- where the obligtions and duties of both the parties ends and none are obligated to any clause as per the contract, reformation- where the court gets involved and changes the substance of the contract that shows inequity for any one party, specific performance- where the party acts or fulfills the contract clause as much as possible and is specific to the original contract.

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