Evaluate the necessary elements of a bona fide contract.
You have just been hired by T&G Consulting and given your first assignment. The nationally renowned performer Cyndy Singer, who is a client of the firm, has made arrangements to give a concert at a premier concert venue, Best Artists Theater. A tentative agreement related to the performance has been drafted and given to you for review. While final approval of the agreement will have to be obtained from T&G Consulting’s Legal Department, you have been asked to provide a preliminary review of the agreement to make sure that it properly reflects the intent of the parties, and to see if the basic elements of a contract are present. (You can assume, for purposes of this exercise, that the parties have the capacity to enter into a contract.)
Please review the agreement and give justification and explanation as to whether the agreement contains the necessary elements of a valid contract. For this review, you are to reflect on and address the following sets of questions:
- There are certain requirements for the formation of a contact:
- What is the first required element of contract formation?
- The second element that must be present for the formation of a contract is consideration. Examine the contract and identify the element of consideration. Describe the details of the consideration that appear in the agreement.
- Mutual agreement (sometimes referred to as “mutual assent”) is reflected in the agreement. Please answer the following questions:
- How is mutual agreement reflected in the contract?
- Why might it be more difficult to establish the existence of mutual agreement in an oral contract?
- Can you think of other pros and cons of written versus oral contracts? Please explain.
- How is a contract concluded or terminated? Please explain this to your client.
- Explain to your client how each party can be discharged from their liabilities.
- Explain the difference between a minor breach and a material breach to your client.