What are the elements of a binding contract Essay

What are the elements of a binding contract - Essay Example For the purpose of this analysis, it will be assumed that all parties are not minors, do otherwise have contractual capacity, and that none of the acts being negotiated are contrary to the law. It is worth noting that in all three cases, the parties involved failed to commit their agreements to written form. Though verbal contracts are technically enforceable, the proof is hard to come by unless two disputing parties manage to agree to the facts. The elements in each case will be evaluated against the standard of contract validity.Question 1. In Chong vs. Lee, the first and foremost finding is that a contract never existed. Their agreement fails in every way to meet the legal definition of a contract because of fundamental defects, so there was no contractual agreement to breach or sue to enforce.Way Lee offered to sell five reconditioned motorbikes to Chong for a set price, but Chong didn't accept Lee's offer; he deferred his answer indefinitely, saying he would "think about it." No contractual agreement was created at that time because there was an offer but no acceptance, and both elements must be present to create a valid contract.When Chong wrote to Lee a week later, he included additional sale conditions, specifically regarding painting the bikes. No contractual agreement was achieved in this instance, either. By changing the terms of Lee's original offer, Chong was effectively making a counteroffer, and implicit in a counteroffer is a declination of the original offer, which then ceases to exist (Graw, 2002). The Postal Rule states that an acceptance is considered conveyed and takes effect at the time it is deposited in a valid postal receptacle or given to a legitimate postal worker properly prepared for posting. A contract would have been formed even if the letter had never been received by the other party. See Adams v. Lindsell (1818). But that rule would not apply here, the main reason being that the letter Chong posted was not a simple acceptance of the original offer, but a counteroffer, and Lee could not have been presumed to have agreed to it without any knowledge of it. Even if Chong's letter had been a simple acceptance of the original offer, a question would have arisen as to whether Lee had intended his original offer to Chong to remain good for a week or whether such a length of time would be deemed reasonable by a judge. It appears from the fact that Lee sold the bikes to other parties that he considered a week too long. Chong clearly believed that he had an agreement with Lee after he posted the letter, and he relied on that belief when creating contracts of his own with other parties to whom he planned to on-sell the bikes. If a contract had existed at that point with Lee, the fact that Chong relied on it would have prevented its revocation or modification. See Drennan v. Star Paving (1958). As it is, Chong is still obligated to perform under his agreement with the other parties, with whom binding contracts appear to have been created, even if he has to find another source for reconditioned bikes of the same type in the appropriate colors and/or pay a different price for them. If he fails to do so, these parties could successfully bring a breach of contract suit against Chong. The conclusion regarding an action by Chong against Lee for breach of contract is that it would fail because Lee was not a party to any valid contractual agreement with Chong at any time. Question 2. In Jones vs. Jimmy and Lee, the most important aspect of the case in the beginning is that Jimmy was not present when Fred Lee offered Jimmy's services to Norah Jones, so at that