Contracts are an important part of business transactions and legal agreements. They establish the terms and conditions of the agreement between the parties involved. However, not all contracts are legally enforceable. There are some which lack certain elements necessary to bind the parties to the agreement. In this article, we explore the different types of contracts and identify which of the following contracts is not legally enforceable.
Types of Contracts
1. Express Contract
This type of contract is established through an agreement between the parties involved. It can be either written or oral and creates a legally binding agreement. Express contracts require only verbal or written agreement to sign and are commonly used for everyday transactions like buying and selling goods and services.
2. Implied Contract
In an implied contract, the agreement is not expressly stated but is instead inferred from the actions or behavior of the parties. For instance, when you go to a restaurant and order food, there is an implied contract between the restaurant owner and you to pay for the food you ordered.
3. Executed Contract
An executed contract is a completed agreement where all terms have been fulfilled by both parties. This means that all obligations have been met, and the agreement is no longer active.
4. Unilateral Contract
In a unilateral contract, only one party makes a promise, and the other party accepts the offer by performing a particular act or fulfilling a task. Once the task is completed, the contract is deemed fulfilled and cannot be revoked.
5. Voidable Contract
This is an agreement that is valid but can be cancelled by one of the parties involved. The decision to cancel the contract can be made because of mistrust, mistaken identity, or any other factor that makes the agreement null and void.
Which of the Following Contract is Not Legally Enforceable?
A void contract is one which is not legally enforceable due to one or more of the essential elements being missing. These elements include:
1. Offer and Acceptance
There must be a clear offer made by one party, and it must be accepted by the other party involved. If there is no offer or acceptance, the agreement cannot be legally enforced.
2. Consideration
Consideration refers to the promises made by both parties. It is the exchange of value that each party brings to the table. Both parties must receive something of value in return for the agreement to be legally enforceable.
3. Capacity
Both parties must have the legal capacity to enter into an agreement. This means that they must be of legal age, sane, and not under duress or coercion.
4. Legality
The agreement must be for a legal purpose. If the agreement is to engage in illegal activities, it cannot be legally enforced.
5. Intention
Both parties must have the intention to create a legal agreement. If one party intends to joke or play around, the agreement cannot be legally enforced.
Based on these essential elements, the following contract is not legally enforceable:
A contract made between two individuals involving the sale of illegal drugs. This contract lacks legality and therefore cannot be legally enforced.
Conclusion
Contracts are essential agreements that establish the terms and obligations of parties involved in a business transaction or legal agreement. While most contracts are legally enforceable, some contracts lack the essential elements necessary to bind the parties to the agreement. A void contract is one that is not legally enforceable due to the absence of one or more of these elements. It is important to understand these elements when drafting a contract to ensure that it can be legally enforced in case of any breach.