Question

R-Vision manufactures recrentional vehicles (RVS). Representatives of Associated Home met R-Vision's regional sales manager. Darrell Higgins, and the product manager. Timothy Cunningham, at a con- vention where they discussed the possibility of Lusing Associated Home as a dealer of R-Vision's RVs in Albuquerque. New Mexico. At the time of the convention, Rocky Mountain RV was R-Vision's dealer in Albuquerque. Higgins contacted Rocky Mountain and told it that if Rocky Mountain did not make better efforts to represent R-Vision's proluct. not receive any RVs from R-Vision. Associated Home filed a complaint charging that R-Vision breached a contract with it by not delivering four RVs. Associated Home argues that the order forms confirm the contract. Did the forms meet the requirements of a valid contract?

Answer 1

Yes the form meets the valid contract.Representative of Associated Home met R-Vision's regional manager. Darrell Higgings,and the product manager. At the time of convention Rocky Mountain RV was the dealer of R - Vision in Albuquerque.As a manager his duty is to achieve the desired set goals of the firm. He has to put his all efforts to represent R - Vision's product. If any firm is contracting with R-Vision then it is the duty of dealer to complete that contract. If the dealer is not able to complete that contract on time than the contracting company can file a complaint against R-Vision for breaching a contract by not delivering RV's. As R-Vision didi not deliver four RVs to the A+ssociated Home on time then Associated Home can file a complaint against R-Vision.

Because requirements of valid contact include..........

Offer and Acceptance

All offers must be valid and once accepted, it binds both the parties into a valid agreement. The offree is now an acceptor, and thus the agreement is made between an offeror and an acceptor. The adjective lawful suggests that the offer and acceptance must satisfy the recruitments of the contract act in relation.

Legal relationship

Parties to a contract must desire to constitute a legal relationship. It results when the parties know that if any one of them fails to fulfil his/her part of the promise, he/she would be liable for the failure of the contract.

If there is no desire to create a legal relationship, there is no contract between the parties. Agreements of social or domestic natures, which do not contemplate a legal relationship, are not contracts.

Lawful consideration

Consideration is described as something in return. It is also vital for the validity of the contract. A promise to do something or to provide something without anything in return will not be enforceable at law and, therefore, will not be valid.

Consideration need not be in kind or cash. A contract without consideration is a wagering contract or betting. Besides, the consideration must also be lawful.

Competency of parties

The parties to an agreement should be capable of contracting. In other words, they should be capable of entering into the contract.

According to the Contract act, every person is competent to contract who is the age of majority to which he/she is subject to and who is of the sound mind and is not disqualified from the contracting by any law to which he/she is subject.

Thus, according to the contract act, every person with the exception of the following is competent to enter into a contract:

• A minor
• A person of unsound mind
• A person expressly declared disqualified to get into a contract under any Law

Free consent

Another essential of the valid contract is the consent of parties, which should be free. As per the Contract Act, two or more parties are said to consent when they agree upon the same things in the same sense. The consent is considered free when any of the following things do not induce it:

• Coercion
• Misrepresentation
• Fraud
• Undue influence
• Mistake

Lawful objects

According to Contract act, an agreement may become a valid-contract only, if it is for a lawful consideration and lawful object. The below-mentioned considerations and objects are not lawful as per the Contract Act

• If it is forbidden by law
• If it is against the provision of any other laws
• If it is fraudulent
• If it damages somebody’s person or property
• If it is in the opinion of courts, immoral or against the public policies

If an agreement is illegal, immoral or against public policy, such agreement becomes an invalid valid contract.

Writing and Registration

The agreements may be oral or in writing. When the agreement is in writing it should comply with all legal formalities as to attestation and registration. If the agreement does not abide by the requisite legal formalities, the law cannot enforce it.

Certainty

To give rise to the valid contracts, the terms of the must not be vague or uncertain. Ascertaining the meaning of the agreement for must be possible. Otherwise, it cannot be enforced.

Possibility of Performance

A valid contract must be capable of performing. An agreements to do an act impossible in itself are void. If the act is impossible in itself, physically, practically or legally then the agreement is not enforceable.

Not expressly declared void

The agreement must have been expressly declared to be void under the contract laws. This act specifies certain types of agreement that have been expressly declared to be void. The following agreements have been declared as void under the Contract Act.

• An agreement in restraint of marriage
• An agreement in restraint of trade
• An agreement by way of wager