Imagine phil has a 15-year-old nephew named Brian. Phil promises Brian that he will pay him $500 if Brian doesn`t smoke before his eighteenth birthday. Brian conscientiously abstains from smoking, and on his eighteenth birthday, Brian rushes to Uncle Phil`s house and asks him for the $500 he promised. Phil pulls his pipe out of his mouth and tells Brian that he owes nothing to Brian because state law says minors are not allowed to smoke. As the law already required Brian to abstain from smoking, his admirable restraint could not be taken into account for the contract. Poor Brian had to skip the $500 and settle for healthy lungs and a lesson instead. What do you get if you combine offer and acceptance, consideration, two parties with the legal capacity to enter into a contract and a legal purpose? You will receive a legally enforceable contract that binds the parties. What`s next? However, sometimes monetary damage is not enough to compensate a person for the violation. Cases involving real estate are. No piece of land or house is exactly like the other, and while the seller may have just been looking for money, the buyer wanted to own that particular property. Purchase contracts for other unique items such as works of art, custom items, or rare items are also situations where monetary damages may not be sufficient to meet a party`s expectations under the contract. In these cases, the court may award a specific service, which is a court order ordering a party to do exactly what the contract requires.

If Tanya announced at the close that she had changed her mind about traveling around the world and refused to sell even though Terry had finalized the money, Terry could ask the court for some service and ask Tanya to close the sale. Leopold reads the purchase agreement and says, “No, thank you.” Do Suzy and Leopold have a contract? Of course not! Suzy made an offer. Leopold did not accept it; in fact, he categorically rejected the offer. For example, imagine Jonas mowing Walter`s lawn for an agreed price of $50, but after mowing, Walter says the job isn`t worth $50 and only gives Jonas $30. In that case, a court would order Walter to pay An additional $20 to Jonas. In the end, Jonas would have $50, which Jonas expected to mow the lawn. The court`s damages put Jonas in the position he expected if Walter had given his best. As a rule, impossibility exists if the assets involved in a contract are accidentally destroyed. However, it may also apply to personal services contracts when a particularly qualified person becomes unable to work or dies. For example, a performance contract for Lady Gaga would become unenforceable due to impossibility if she died suddenly.

No one could replace Lady Gaga as an actress. Contracts are mainly subject to state law and general (judicial) law and private law (i.e. private agreements). Private law essentially includes the terms of the agreement between the parties exchanging promises. This private right may prevail over many rules that are otherwise set by State law. Legal laws, such as the Fraud Act, may require certain types of contracts to be concluded in writing and executed with special formalities for the contract to be enforceable. Otherwise, the parties can enter into a binding agreement without signing a formal written document. For example, the Virginia Supreme Court in Lucy v. Zehmer said that even an agreement reached on a piece of towel can be considered a valid contract if the parties were both healthy and showed mutual consent and consideration. In contractual matters, courts generally measure the limitation period from the date of the infringement. As soon as a violation occurs, the limit clock begins to tick.

The non-infringing party must bring an action within the statute of limitations or run the risk that the court will declare the contract legally unenforceable. A legally unenforceable contract is a dead contract. He can`t get anyone to do anything. However, the court will not apply the presumption to certain categories of persons, namely minors, the mentally ill and drunk persons. The law recognizes that experiences such as immaturity, inexperience, mental illness or intoxication can limit a person`s judgment and that other people could unfairly exploit that limited judgment. As a result, the law treats people in these categories a little differently when it comes to contracts. .