BUSN370 Regent University Legally Enforceable Contract Case Discussion I will need 2 responses to the following 2 discussion board posts. (see attached) O

BUSN370 Regent University Legally Enforceable Contract Case Discussion I will need 2 responses to the following 2 discussion board posts. (see attached)

Original prompt from the discussion board – Utilizing the concepts from Chapters 7 through 11, post a message that identifies and explains the elements necessary to form a legally enforceable contract. What is the responsibility of each party in determining these elements and when would governmental intervention become necessary when balancing the interests of the parties?

Liuzzo, A. L., & Hughes, R. C. (2019). Essentials of Business Law (10th ed.). New York, NY: McGraw Hill Education:
Chapters 7, Introduction to Contracts;
Chapters 8, Offer and Acceptance;
Chapters 9, Mutual Agreement;
Chapters 10, Consideration;
Chapters 11, Competent Parties;
Chapters 12, Legal Purpose of Contracts;
Chapters 13, Form of Contracts;
Chapters 14, Operation of Contracts;
Chapters 15, Discharge of Contracts; and
Matthew 25:14-29 (Stewardship).

For the 2 responses – In addition, learners post a minimum of two responses to peer initial responses. The peer response should include additional research that expands upon one of key points noted in your peers initial response. The peer reply should be composed in a professional manner with a word count range of 150-350 words each. Post #1 – Lori Corbett
B.C. Forbes (1944), the founder of Forbes magazine, famously said, “The bargain that yields
mutual satisfaction is the only one that is apt to be repeated.” To first address the idea of
a contract, Liuzzo & Hughes (2019) defined it as “a legally enforceable agreement that is
created when two or more competent parties agree to perform, or to avoid performing,
certain acts that they have a legal right to do and that meet certain legal requirements”
(p.104). They continued on to explain the essential elements necessary to form a legally
enforceable contract. “A contract must contain six elements: (1) offer and acceptance, (2)
mutual agreement, (3) consideration, (4) competent parties, (5) legality of purpose, and (6)
proper form” (p. 105).
One of the elements of a legally enforceable contract has to do with competent parties. This
means that one’s capacity to contract involves both the age and mentality of the individuals
engaged in that agreement. “The responsibility of determining whether a person is
competent to contract rests on everyone who enters into a contract with such a person”
(Liuzzo & Hughes, 2019, p. 168).
To ensure that there is a balance in the interests of the parties of a contract, Richard
Messick (2005) of the World Bank suggested that governmental intervention would become
necessary if there were a need to facilitate the enforcement of contracts. “Contract
enforcement is crucially important for economic development. The lack of means for
enforcing contracts is the single most important source of economic stagnation and
underdevelopment. Courts are the most important public contract enforcement institution”
(para. 5). Adam Smith (1776), author of The Wealth of Nations, believed that a well-governed
society should enjoy “the certainty of being able to exchange, which encourages every man
to apply himself to a particular occupation, and to cultivate and bring to perfection whatever
talent or genius he may possess for that particular species of business” (p. 20). The reality
is, contracts do not amount to much if they aren’t honored by all parties concerned. Should
there be someone who isn’t fulfilling their part of the contract, this would give the
opportunity for the government to intervene. “Brothers and sisters, let me take an example
from everyday life. Just as no one can set aside or add to a human covenant that has been
duly established, so it is in this case” (Gal. 3:15, New International Version).
References
Liuzzo, A. L. & Hughes, R. C. (2019). Essentials of business law (10th ed.). New York:
McGraw-Hill Education.
Messick, R. E. (2015). What governments can do to facilitate the enforcement of
contracts. World Bank.
Retrieved on Apr. 17, 2019 from: https://www.enterprise-development.org/wpcontent/uploads/
Smith, A. (1776). The wealth of nations. New York: Random House.
Post #2 – William Gott
Contracts have most certainly crossed everyone’s path at some point in their life. Contracts
are used for jobs, trading between businesses, buying houses or cars, and just about
anything that involves two or more parties exchanging goods or services. These can be
written, oral, or implied contracts. However, there are several elements that are required to
be present to make a contract legally binding.
According to U.S. Legal, the following must be present to make a contract legally
binding; “The requisite elements that must be established to demonstrate the formation of a
legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of
obligation; (5) competency and capacity; and, in certain circumstances, (6) a written
instrument.” I feel like the key components of these elements are the mutual agreement and
the competency of both parties. If both parties are not competent then it too easy to exploit
the less knowledgeable party.
The government or courts can step in anytime there is a suspected breach of
contract by any of the two parties. “A breach of contract is a failure, without legal excuse, to
perform any promise that forms all or part of the contract” (jec.unm.edu 2017). Breaches
can either be material or minor. A breach is material if, as a result of the breaching party’s
failure to perform some aspect of the contract, the other party receives something
substantially different from what the contract specified. An example would be failing to
produce any product at all. A breach is minor if, even though the breaching party failed to
perform some aspect of the contract, the other party still receives the item or service
specified in the contract. An example of this would be if the receiving party still got the
expected items, but it was delivered late.
References
Breach of Contract. (n.d.). Retrieved April 17, 2019, from
http://jec.unm.edu/education/online-training/contract-law-tutorial/breach-ofcontract
US Legal, Inc. (2016, October 06). Elements of a Contract. Retrieved April 17, 2019, from
https://contracts.uslegal.com/elements-of-a-contract/

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