Contract Risk and Opportunities


Contract Risk and Opportunities
University of Phoenix

Contract Risk and Opportunities
      A thoughtful and precisely written contract that allows for all parties involved a thorough understanding of every detail and all expectations and procedures will provide a beneficial working relationship for all parties involved. Creating a contract that has the ability to expand and contract within a working relationship, as air does in our lungs without thought, creates a more effortless situation that in the end will minimize misunderstands and disagreements. If, in this case, C-S and Span had been more specific in the offer and C-S in the demands, many of the disputes could have been avoided. A contract is a legal and binding agreement between two or more parties if it includes the following:
      Offer: a specific proposal to enter into an agreement with another. An offer is essential to the formation of an enforceable contract. An offer and acceptance of the offer creates the contract (Hill & Hill, 2005).
      Acceptance: receiving something from another with the intent to keep it, and showing that this was based on a previous agreement (Hill & Hill, 2005).
      Consideration: consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. Consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration) (Hill & Hill, 2005).
      There are other legal requirements that must be met such as the parties involved must be of legal age and sound mind. Minors and people with proven limited mental capacity are forbidden to enter into contracts. Contractual agreements involving Illegal activities such as selling drugs are not valid and are unenforceable. Any contract that goes against public policy is also unenforceable,...