Legal Environment of Business System

Question: Discuss about the Legal Environment of Business System. Answer: Every valid contract must have all its elements. Considering that, the court will only need five main elements to ascertain that there was a valid contract. These elements are an offer and acceptance, consideration, capacity, consent, and the legality of the contract (Tepper, 2012) In (Kim, 2014), the paper explains the main defenses as lack of contractual capacity, the incompetence of one party, intoxicated or a minor infancy. Also, misrepresentation, undue influence, duress, and unconscionability will exempt the breaching party from the suit. Thirdly, fundamental assumptions like a mistake of facts, frustration on purpose, and impracticability are also ground for defense. Yes, Salem had a valid contract, and it had all the five elements. The bank promised to give Salem a compensation for his work, and Salem entered into the contract by promising to deliver his services to the realization of the said goals. With this, the contract was also bilateral. In other words, the two exchanged a promise for a promise. Also, they accepted the terms willingly. Requirements for an Implied Contract Implied contracts rely on the conduct of the parties rather than their words (McMillan v. Shively, 2009). For an establishment of implied-in-fact contract cross and miller found that the plaintiff must furnish a service to the defendant expecting to be paid, the defendant must know that the plaintiff expects to be paid, and the defendant must have a chance to reject the property or service and does not (Cross Miller, 2015, p 255) Salem has a clear case in establishing an implied-in-fact contract. Even considering the terms that were in the manual and compensation plan, the manual was in writing despite the facttt that the parties contracted in words. He perfectly provided his service, and the Nour Bank accepted his work. Also looking at the situation, both parties discussed the terms as they were in the manual, and each accepted the terms. Salem can sue Nour for breach of a contract. Conclusion Whether a contract is in writing or words, the court will always try to look at the element that satisfies that there was truly a contract. This one is an effort that the courts use to save the innocent party from the misconduct of the breaching party. References Tepper, P. (2012). The law of contracts and the Uniform commercial code (2nd ed., pp. 34-35). New York, NY: Delmar, Cengage Learning Kim, N. (2014). Wrap contracts (1st ed., p. 8). New York, NY: Oxford University Press. McMillan v. Shively, 23 So.3d 830, 831 (Fla. 1st DCA 2009). Miller, R.L, Cross, F.B (2015). The legal environment of business (8th ed., p. 255). Mason, Ohio: South-Western Cengage Learning.