Law of contract Essay Example | Topics and Well Written Essays - 2750 words

Law of contract - Essay Example A contract ensures that each party sticks to his responsibilities, and delivers them as, and per the agreed terms, for the success of that business. In case of a breach of contract, one will have to be compensated through the various remedies that will be stated. This paper will cover various aspects of the law of contract. It will start by offering an appropriate advice to Anila, who owns a fleet of freight aircraft, and Yogesh, an aircraft customer, before proceeding to discuss the issue of frustration in contract law. Issue 1: Case Description, in line with Contract Law Anila is a business person, who owns a small freight of aircraft. Anila enters into a contract with Yogesh, but fails to deliver, which results into a breach of contract. Anila was supposed to provide Yogesh with aircrafts for 3 years. However, for the first few months, the aircrafts get grounded by several mechanical problems. The contract is breached, and Yogesh responds by terminating it. Yogesh gets into a cont ract with another company, which provides them with the services that they wanted. The market expands rapidly, and their customers increase over time. However, towards the end of the year, some aircrafts also get grounded, and Yogesh has no alternative but to go back to Anila. Anila gives Yogesh an offer of $ 40000, but Yogesh declines to the offer. Advice According in Line with the Law of Contract In advising Anila and Yogesh, I would first of all ensure that they understand what they had entered into. I would help them to understand they had entered into a contract, and that a contract has some elements that must be upheld for it to remain valid. In a contract, each party must ensure that they stick to their responsibilities as stated in the contract. Each of them should be concerned about the needs of the other party, since it is a mutual thing. They should ensure that all the elements of their contract are upheld, since a breach of contract may lead to a problem on both sides. I would start by defining to them a contract before taking them into the elements of a contract, so that next time they enter into such an agreement, they will be fully aware of whatever they are doing, and will avoid a repeat of such problems again. Contract Definition in relation to the Case of Anila and Yogesh A contract is a formal type of agreement that involves two or more people, who have an interest or relationship to the subject at hand3. Contracts cover many matters, in various fields, like sale of goods, lease of goods, real property, or employment terms4. The agreement between Anila and Yogesh was a lease agreement, since Anila was leasing freight aircrafts to Yogesh. All valid contracts have terms and conditions which make them valid5. These are the elements of a valid contract. They are as follows: Mutual Consent This is where the parties to a contract come up with an agreement of what the contract involves, and both of them agree to one thing6. For example, in a contra ct of sale, if the buyer thinks that he will sell a house, while the buyer expects to get a donkey, then the contract is unenforceable. Anila knew that she would lease her aircrafts to Yogesh, and Yogesh expected good aircrafts to be delivered that was a mutual consent between them. In that case, all of them