Business Essay

1039 Words Sep 12th, 2014 5 Pages
Title of the paper Name Lecturer

Before entering into any agreement one needs to answer the question, “What are you receiving for being a party to this contract?". This principle is known as consideration. For a contract to be deemed legally binding, it must include the benefit that each party expects from the deal.
Consideration only offers a valid basis for an agreement if each p[arty agrees to make changes in their stands or “position”. This comes as a result of; a) A promise to do something you are not legally obliged to do b) A promise not to do something
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As common law, damages are into actual damages and punitive damages. Actual damages are further divided into special damages which are economic losses such as loss of earning and property damage and non-economic damages like pain and suffering and emotional distress.

Question 2: If you did not agree to their terms, and they walked out, what would you have been able to do if the orders weren’t fulfilled and the business lost $10,000.00?
It is important to remember only the parties to the contract may enforce the terms of the agreement. The owner of the company could reject the agreement on the basis of not being privy of the contract between the manager and the employees.
If the two employees (Sam and Dan) incited 4 other employees and didn’t report to work on the busy day the company would have lost ($ 10,000) resulting into economic losses (special damages) sue able in the court of law. The employer had all the right to take them to court, a court generally awards the sum that would restore the injured party to the economic position they expected from performance of the promise or promises. Expectation measure or benefit-of-the-bargain measure of the damages as a result of loss of money from the function due to non-delivery of flower were also likely to be spoilt being perishable

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