Contracts: Overview, Definition, Categories, and Source of Law with Analysis of Objective Intent and Valid Contract Elements
Overview
This coursework assignment examines fundamental contract law concepts, particularly the objective theory of contracts and the four essential elements required for a valid contract. The paper analyzes scenarios distinguishing between objective and subjective intent, and defines the requirements of agreement, consideration, capacity, and legality in contract formation.
What this coursework covers
- Objective Intent Definition: Explains the objective theory of contracts and how reasonable persons interpret manifestations of intent through circumstances and language
- Objective vs. Subjective Scenarios: Analyzes two contrasting examples to demonstrate how objective facts differ from subjective interpretations in contract disputes
- Four Elements of Valid Contracts: Details agreement, consideration, capacity, and legality as mandatory components for contract enforceability
- Contract Status Definitions: Briefly defines valid and void contracts based on fulfillment of required elements
Preview
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Contracts
Chapter 6: Contracts: Overview, Definition, Categories, and Source of Law
- Describe Objective Intent (also called the Objective Theory of Contracts). Identify which of the following scenarios represents objective vs. subjective facts. Explain why:
(a) "The plaintiff states that though he was laughing when discussing the sale of his bike with the defendant, he was completely serious in his intent to offer his bike for sale."
(b) A witness to two parties states that the plaintiff had been drinking beer for hours, slurred his words when he spoke, and stumbled upon standing. Still, the defendant had one beer and wrote the terms of the discussion with the plaintiff on the back of a restaurant check."
Objective intent refers to the manifestations of intent that a reasonable person would conclude as a serious offer: the circumstances of the transaction and the language of the parties involved must show an objective intent to contract. An objective intent constitutes language and conduct that an unbiased third party would interpret as a definite indication that the parties in a business transaction intended the contract to be legally enforceable. The second represents objective facts of the two scenarios, while the first represents subjective facts. The first scenario is subjective because the circumstances of the transaction or the plaintiff's language do not indicate an objective intent to contract. There is no objective indication that the plaintiff willingly agreed to enter into the contract: laughing can be subjectively interpreted as a serious intention of selling the bike.