Thinking back on the last few months, consider a time when you encountered a fri

Question

Thinking back on the last few months, consider a time when you encountered a friend or business associate who promised or agreed to do something but did not follow through. For example, did someone agree to sell you something but at the last minute changed the price? Or did someone agree to perform a service, but then later said he or she was too busy? Relate the facts of your example. explain why the facts you presented did or did not meet the legal requirements for a contract. Be sure to support your response.

Explanation / Answer

I consider it a fact that contracts can be in written or oral forms. Overall, contracts are defined through promises between parties that are enforceable through law. Some contracts tend to be bilateral which is utilizing a mutual commitment or in the form of unilateral means which is legally binding and are enforced through promise between joint parties.

Some examples of bilateral contracts can include ordering an alcoholic drink at a local bar, purchasing merchandise in a retail store or getting a haircut or hairstyle a local barber shop or hair salon. These are fundamental actions where one person has promised a response to someone else's actions.

Many times unilateral contracts fall within the understood notion that one side of the party will monetarily compensate another party to perform a task or duty. An example can include a person post a newspaper advertisement offering to pay a $150 reward for a lost iPad. One party promise to pay monetarily through a specified amount for the return of the lost iPad. By offering a reward, the person has created a unilateral contract.

At one point, I worked for a friend in a successful buy, sell, and trade business. One of the business strategies is liquidating assets from businesses in the hospitality market. One of the company's largest clients at the time was hotel chains. Hotel and Resort companies are consistently upgrading and changing out guest room furniture to remain competitive within the hospitality market. As a part of the business' strategy, they provide free removal of guest room furniture or through the pay of pennies on the dollars on the value of each piece of furniture. The company would then sell the furniture at wholesale cost to business buyers looking for low-cost furniture inventory for their businesses or to local consumers in the search for quality furniture for a reasonable price. On this particular job, the company had a hotel location's front end manager promised 75 pieces of furniture for $5.00 each which totaled $375.00. Once we showed up with a truck and started to load the furniture pieces, we were informed by the company owner that the person who quoted my friend a price of $5 each was just a manager and was not in charge of furniture pricing for liquidators. The owner informed my friend and I that they wanted $7.00 per piece. The price quoted was $2.00 more per piece of furniture then the verbal agreement I had with the manager days before.

The facts presented from this example does not meet legal requirements for a contract. The contract elements of this situation a falls in the category of a Void Contract. A Void Contract is not considered enforceable within a court of law. Because the hotel manager had no capacity to contract out a buyer to purchase the company's furniture inventory for a particular price, the contract is void. The hotel owner is who had priority over setting asset prices for furniture. If the contract had been valid, it would have been a part of Express Contract. Express contracts are formulated conversation between two parties for an offer to sell from the seller and acceptance to buy from the buyer.

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