Creation of a Contract

Contract Risk and Opportunities
David Ortiz
University of Phoenix
Tuesday, May 8, 2012
Prof. Lirio Bernal-Sanchez

Contract Risk and Opportunities
This report will serve as a review of the legal risks and opportunities that are present at the moment of a business formalize contracts.   The report is based in a contract simulation of Info Build a software company and Majestic Hotels to establish an electronic reservation system.
A contract is an agreement that is enforceable by a court of law or equity . A simple and widely recognized definition of contract is provided by the Restatement (Second) of Contracts: “A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.”3
An express contract is stated in oral or written words. Most personal and business contracts are express contracts. A contract that is oral or written is an express contract.
Implied-in-fact contracts are implied from the conduct of the parties.
A contract is a promise between two or more parties to do or refrain from doing an act, it creates obligations which are enforceable in a court of law. (Wikipedia) It is very important to read and understand a contract before agreeing to its term. During the negotiation process one can make changes or add but once the contract is signed and agreed upon the deal is sealed. The Contract Creation and Management simulation serves to highlight the importance of reviewing on existing or new business contract in order to avoid misunderstanding. It is best to review and study the contract before reaching an agreement to make sure the contract is beneficial for both parties and for the success of the contract....