Recognizing Contracts Risks and Oportunities
Recognizing Contract Risk and Opportunities
Keila Fuentes University of Phoenix
LAW/531PR Puerto Rican Business Law
September 11, 2013
Prof. Lirio Bernal-Sánchez
Recognizing Contract Risk and Opportunities
Businesses are constantly negotiating contracts with other companies or individuals. According to Cheeseman, 2010, a contract is an agreement that is enforceable by a court of law or equity, and it involves at least two parties. In order to be enforceable contracts must have the following four elements: agreement, consideration, contractual capacity, and lawful object. The first element, agreement, means that in order for a contract to be enforceable must parties must agree. Consideration is what the parties are bargaining for. Money, personal property, real property, provision of services, and such qualifies as consideration (Cheeseman, 2010). The third element, contractual capacity, refers to the capacity that a person has to enter into a contract. A contract cannot be enforce when a person lacked contractual capacity at the time of the contract (i.e. mental illness). The last element refers to lawful object. Contracts can be enforced only when the object of the contract is lawful, otherwise the contract is invalid.
When it comes to Puerto Rico, the requirements for a contract to be valid are only three.
There is not contract unless the following happens: agreement between the parts, the object of the contract must be true, and cause of the obligation established (31 LPRA 1213). The student has reviewed the Contract Creation and Management simulation, and will discuss the risk and opportunities a company form Puerto Rico may have in a similar situation, and the legal principles involved. Also, the student will evaluate the simulation based on the Puerto Rican laws.
Risk, Legal Principles and Opportunities The simulation presents two companies, Span Systems and Citizen-Schwarz AG
Keila Fuentes University of Phoenix
LAW/531PR Puerto Rican Business Law
September 11, 2013
Prof. Lirio Bernal-Sánchez
Recognizing Contract Risk and Opportunities
Businesses are constantly negotiating contracts with other companies or individuals. According to Cheeseman, 2010, a contract is an agreement that is enforceable by a court of law or equity, and it involves at least two parties. In order to be enforceable contracts must have the following four elements: agreement, consideration, contractual capacity, and lawful object. The first element, agreement, means that in order for a contract to be enforceable must parties must agree. Consideration is what the parties are bargaining for. Money, personal property, real property, provision of services, and such qualifies as consideration (Cheeseman, 2010). The third element, contractual capacity, refers to the capacity that a person has to enter into a contract. A contract cannot be enforce when a person lacked contractual capacity at the time of the contract (i.e. mental illness). The last element refers to lawful object. Contracts can be enforced only when the object of the contract is lawful, otherwise the contract is invalid.
When it comes to Puerto Rico, the requirements for a contract to be valid are only three.
There is not contract unless the following happens: agreement between the parts, the object of the contract must be true, and cause of the obligation established (31 LPRA 1213). The student has reviewed the Contract Creation and Management simulation, and will discuss the risk and opportunities a company form Puerto Rico may have in a similar situation, and the legal principles involved. Also, the student will evaluate the simulation based on the Puerto Rican laws.
Risk, Legal Principles and Opportunities The simulation presents two companies, Span Systems and Citizen-Schwarz AG
References: Cheeseman, H. Bussiness law: legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Prentice Hall. University of Phoenix. (2013) Contract creation and management simulation. Retrieved from University of Phoenix, Simulation, LAW531. Commonwealth of Puerto Rico Constitution. Article II. Retrieved from lexjuris.com