This paper presents a discussion on factors that are critical in the formation of a contract and all the necessary information regarding the subject. A sample contract is drafted that is used as a reference for this discussion. Hereby is the contract; this contract is made on this day of 10th November 2012 between Grace of Passport number wxct22 and John of passport number whfn34, for the sale of all that parcel of land identifiable as Land Reference Number 330/34 situated North West of Alabama. Whereas Grace is the registered owner of the parcel, she offers to sell the land to John in consideration of Three Thousand US Dollars.
The above is the contract. The parties to it are Grace who is the vendor and John, the purchaser. The third parties to this contract are the estates of the two parties. Whereby one of them fails to honor his part of the promise, and the other happens to be incapable of following it up by suing, their estates can take that duty. The following are the requirements for formation of a valid contract; agreement, this means that the parties to the contract must agree to undertake some event. In this case, it is sale of land by Grace and its purchase by John. Acceptance is another factor. The offer to be given by one party must be consented to by the other as it is. For instance, the offer to sell land to John at the said consideration to be accepted as it is. Consideration is something of value that moves from the person being given an offer to the one who offers it. The amount for the sale of land constitutes the consideration. Capacity is a legal requirement for the capability of any person to enter into contracts. It protects minors, drunkards, and insane people from entering into any agreements. The purpose for which a contract is formed must be lawful, one recognized by the law. Otherwise, the decision would be void. This is the legality requirement.
The agreement is a unilateral contract. This is because it involves only one party making a promise to the other (McKendrick, 2005). Grace promises to transfer ownership to John once he pays the price. A possible defense could be mistake. Either party can claim there was a mistake. For example, the size of the land turns out to be of different acreage from the one contained in the agreement. Discharge involves the release of the parties from their legal obligations. This can be through performance of the intended purpose, frustration that renders the contract incapable of performance, agreement whereby the parties decide to pursue other means as means of performance and breach, which means that one party fails to honor her or his part of the bargain. The innocent party would sue for damages or pursue other available remedies.
Example of one breach is a scenario where John fails to pay the price as agreed. In this case, Grace has a right to sue for the payment of the money. A remedy can be award of damages to cover the loss suffered by the innocent party. This business contract can be effected through technology. The agreement can be prepared, scanned or typed and sent via e-mail to all the parties for their review and signatures. Then the consideration transferred electronically to the vendor. Hence use of technology.