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Describe the General Nature of Contractual Relationships

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Contracts are not only applicable to business but are also part of our everyday life. A contract is made out of the simple act of purchasing a newspaper, using a credit card to buy a dress or paying a parking free. Other contracts such as the sale and purchase of property are more complex, requiring formal written documents. Contract forms the basis in many transactions, for instance the buying and selling of goods and service, employment contracts, partnership contracts and insurance policies. The formation of a contract is based on obligations that are freely assumed rather than imposed. Liability in contract is based on voluntary undertaking of the obligations by the individual.

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The law of obligations within contracts is also intended to protect the rights of every individual who entered into a contract or agreement. When a contract that has been made was proven to be legal, carrying all the essential elements that a “legal” contract must have, then the rights of the individuals within a contract are considered legal as well. Hence, when one of the parties involved in that agreement did not follow the terms and obligations indicated in the contract, then the other parties involved have the right to consult a legal entity or appeal to the court system for the remedies on the breach of contract or agreement. This therefore proves that creating obligations between parties in a contract puts a specific party at an advantage as the latter can exercise that right to legally enforce another party to deliver his or her commitments as stated in the contract

Furthermore, legal obligations are inevitable elements of a contract. A contract will never exist without the obligations, actions or performances to be fulfilled. Both parties enter into an agreement or a contract to do something in exchange of something. And oftentimes, these obligations or performances are being abused by both parties due to the lack of a strong reinforcement to fulfill such obligations. It is but human nature to violate laws, break promises and destroy oaths and many times, people loves to violate all the rules no matter how valuably it is intended for their protections. The consent theory involves the transfer of rights between and among right-holders. If the consent theory therefore involves rights-transfer, the law must therefore directly intervene and set limits on how people can possibly make use of those rights and how these rights may be transferred from one person to another. Given this, there is no doubt that the consent theory is closely linked with contractual obligations as consent and the transfer of rights is a necessary pre-requisite for any contractual agreement. As stated in the article entitled, “the basic explanation on the binding characteristic of contractual commitments is mainly attributable to the very notion of entitlements or rights as well as how these rights are transferred and acquired

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The law requires that parties entering into any form of a contract should meet certain standards for the agreement to be legally binding and enforceable (Cassidy, 2006). This is a critical provision when considered critically in the context of contracts. For instance, the provided case exhibits credible legal provisions that should have been considered early enough in order to legalize the concerned contract. The fundamental issues that requires establishment before formalizing contractual agreements include age group, mind capacity, soundness and willingness to accept the terms. In review of the Case involving Drive Yourself Company and the minor, it is evident that the company acted on negligence when making the recruitment of the new driver. Indeed, the lawsuit against the company would succeed since it omitted the major provision of contract procedures. The organization could have considered practicable legal provisions before recruiting the new employee. The fact that the new driver was young in the industry could have been considered credibly before hiring him. The company never performed its investigations adequately to ascertain the age group of the driver who later turned to be 17 years. Legally, employing minors is forbidden in numerous states. The exact age of an employee should be established before signing legal contracts with him or her. This is a considerable provision when scrutinized legally in the context of contracts. Precisely, Drive Yourself Company is legally on the wrong side of the law. Initially, the company violated the law by recruiting a minor to work for it as a driver

This exposed the company as a prominent violator of the contract act; thus Drive Yourself Company was liable for its actions. Precisely, the lawsuit against the company would succeed since it omitted the major object of contract procedures (Cassidy, 2006). This is a considerable provision in the legal contexts. Numerous institutions have strived to obey the provisions of the law when making contracts with other independent parties. These are done to avert future convictions due to breach of contracts.

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As shown above, employee contracts provide terms to be followed, which both employer and employee must read carefully and ensure they understand before signing or accepting to be bound by them

If an employee does not accept the terms, he or she can decline the contract. The agency relationship replicated in this paper has affected the face-to-face dealings; the paper has highlighted the type of laws required by employees and duties of agents in different points of work.

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Cassidy, J. (2006). Concise corporations law. Annandale: Federation Press

Helewitz, J. A. (2010). Basic contract law for paralegals. Austin, TX: Wolters Kluwer Law & Business

Kern, T. & Willcocks, L. (2001). The relationship advantage: Information technologies, sourcing, and management. Oxford: Oxford Univ. Press

Meiners, R., Ringleb, A. & Edwards, F. (2008). The legal environment of business. Mason, OH: South-Western Cengage Learning

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