A contract is an agreement enforced legally between two parties or more. It can be achieved orally or by writing though oral contracts. They are always accompanied by documented prove thus written contracts are more popular and regarded as the formal way in achieving the parties desire. The contract should not only be permissive to the law but also comply to the relevant formalities stated. For this case, rental agreement contract to be discussed. (Foran & Wight, 1989)
Elements of a contract
Rental agreement contract entails the tenant’s details, which includes capturing of personal details: Name, Address, House Number, identification number and other related details. On the other hand the landlord provides the personal details to the tenant this aspect is achieved under the mutuality of obligation between the two parties, more so the contract terms should have the capacity to meet the intention similar to both parties. (Paterson etal, 2012), mutuality of obligation to the rental agreement develops a sense of belonging to the parties involved therefore it builds the trust to a greater height. This aspect is demonstrated positively through the monthly, every three month or annually depending on the agreed terms.
Proving an offer to the contract also is another element by accepting the offer regarding to the terms with the other party through an understanding for example a letter can be used as a medium of offer and on the other hand the feedback is expected from the other party if interested to take the offer thus the contact will be binding over the accepted offer (Antras & Helpman, 2004). The offer should entail the statement of intention by the offering party, terms of the specific proposal and communication to which the offer is made to. The rental agreement for this case provides an offer to the clients especially for the purpose of marketing and in return they gain a benefit.
However, the subject matter according to the law, considerably the contract letter should contain terms that do not violate the public policy, the agreement has the authoritative details which when implemented all the aspects of the law are consolidated to encounter the margin and lit of the rule of law (Paterson etal, (2012). Rental agreement policies are also involved either to in line with the policies enforced, the convincing power of subject matter approves to the parties that the contact is factual and considerably legal.
More so, consideration as an element to an enforceable contact, rentals agreement usually is concerned with money as the main key player which must be clearly agreed upon as provided in the contract (Antras & Helpman, 2004). This aspect is demonstrated in the rental agreement through providing a considerable price as per offer stated towards the implementation, consideration is also implied clearly upon the contact terms availed between the parties.
Nevertheless, acceptance is the statement used in terms of an offer; it may be approved by the intended person or party authoritatively or from another authorized person or party to give approval (Antras & Helpman, 2004). In the case of rental agreement the interested party has the capability to decline or accept the offer under no forceful acts depending on the existence of interest, acceptance isn’t questionable to either parties since a contact terms does not violate the rights of humanity
According to Paterson etal, (2012), breaching of contracts comes under various conditions, one is the anticipatory repudiation, it is a situation where one party of the participants of the contract communicates that she / he will not be able to fulfill the contacts obligation by the deadline, the situation occurs towards the innocent party and the remedy of repudiation in the rental agreement could be compensation of the loss especially to the non-breaching party. The amount should be awarded to the contract breaches and replace the loss caused by the breach
Fundamental breach occurs when a party is permitted to terminate the performance of a distressed party and have the ability to sue the party, rental agreement contract can be used as an example towards establishing the mandate of contract breaching for instance the fundamental breach occurs under the circumstances that an innocent party is faced with charges and in turn a relevant action of termination of the contract is taken into account (Woolthuis, 2005). The remedies of such situations are compensatory damages are taken into calculation and award to the damages, the non-breaching party should be reasonable in mitigating damages.
However legitimate terms of agreement that binds the parties legally can be used in refusal of various services that were to be provided as per terms giving details that they were harmed by the breach, they may enforce an arbitration case within the court of law over the misconduct and the terms conveying the situation that resulted to breach of contract. For instance, the rental agreements stated between two parties can be used as a breach by the authority that it violates the rights of the individuals and misconduct of either party (Paterson etal, 2012). The remedies include reimbursement incurred in the process of defending the rights and policies especially in the court of law and refund of any amount at cost over the process of acquiring the legal process
In conclusion, contracts should be made under terms and conditions that are favorable to both parties in that, all the policies and rights are all catered for in existence of the parties. Most contracts should also provide a, measure to cab with the minimal issues that can be avoided at a less cost rather than providing terms that has a favor in one party, also the remedies should be calculated accurately during compensation in whatever reason all the parties are at a value lane for a complete contract to achieve successfully.
Antras, P., & Helpman, E. (2004). Global sourcing. Journal of Political Economy, 112(3), 552-580..
Paterson, Jeannie; Robertson, Andrew; Duke, Arlen (2012). Principles of Contract Law (Fourth ed.). Sydney: Thomson Reuters (Professional) Australia Limited. p. 440.
Woolthuis, R. K., Hillebrand, B., & Nooteboom, B. (2005). Trust, contract and relationship development. Organization studies, 26(6), 813-840.
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