A contract is a legally binding exchange of promises or an agreement between the parties that is legally enforceable. In contract law, the legal object is the requirement that the object or reason of the contract be lawful. The legal objective ensures that insurance companies do not insure criminal activity. Without them, the crime rate could increase due to the lower financial risk. An agreement is lawful and enforceable only if it is in accordance with the law of the land and public order. The essential element of a contract law agreement. Any agreement is not legally binding if it is intended for illegal purposes. There must be a legal reason and purpose for the performance of the contract; For example, the policyholder must have an insurable interest in the insured. What do you think about the requirement that a contract must have a legitimate purpose? Can you imagine situations where this requirement can lead to an unfair result for the parties? Should there be a sliding scale to determine the enforceability of contracts that are contrary to public policy or illegal? Why or why not? Do you need an example of legality in contracts to solidify your understanding? Let`s take a look at the one below: Every legal contract begins with an oral or written offer from one party to the other, and written agreements prove that a contract exists. An employer is legally responsible for paying an employee`s wages and other benefits, as required by law. On the other hand, the employee must perform the tasks assigned to him or her as described in the job description. If a party violates the terms and conditions, the contract adequately protects the injured parties. However, alliances are not applied if they are intended to achieve an illegal goal.
The Supreme Court ruled in Shelley v. Kraemer, 334 U.S. 1, 68 S. Ct. 836, 92 L. Ed. 1161 (1948), that no court or official has the legal authority to take action to enforce a racial league. In that case, a group of neighbors filed a lawsuit to prohibit a homeowner from selling his home to black people, based on the argument that the owner had bought the home under the restrictive agreement not to sell to blacks. The Covenant was found to be unenforceable on the basis of the Housing Equality Acts. The application of the law would constitute a violation of citizens` rights.
COVENANT, contracts. An alliance, conventio, in its most general sense, means any kind of promise or contract, whether in writing or by parol. Rapacious. P.C. b. 1, c. 27, ยง 7, p. 4. In a more technical sense, and the one in which it is considered here, a pact is an agreement between two or more persons concluded in writing and under seal, each party establishing the truth of certain facts or promising to do or give something to the other or to refrain from doing certain things. 2 Bl. Com.
303-4; Ferry. From. Bund, in pr.; 4 cruises, 446; Sheppard, touch. 160; 1 Harring. 151, 233 1 Bibb, 379; 2. Bibb, p. 614; 3 John. 44; 20 John. 85; 4 days, 321. 2. It differs from an explicit hypothesis in that the former cannot be filed orally or in writing, whereas the latter must always be made by act. In a case, a consideration must be demonstrated; In a federation, no consideration is required to confer its validity, even before a court of equity.
Ploughed. 308; 7 R. T. 447; 4 barn. et ald. 652; 3 Bingh. 111. 3. It is proposed that the general requirements of an alliance be examined first; and second, the different types of alliances. 4.-1. The general requirements are, 1.
Good games. 2d. Words of consent. 3d A legal purpose. 4. A correct form. 5.-1. The parties must be such that they can lawfully conclude a contract. If either through lack of understanding, as in the case of an idiot or a madman; or, in the case of an infant, if the contract is not in the infant`s favour; or if there is agreement, but for certain reasons, such as concealment, in the case of a married woman, or coercion, in all cases the parties are not competent, they cannot bind. See parties to claims. 6.-2D.
There must be an agreement. The agreement or consent must be reciprocal, as the agreement would be incomplete if either party refused to accept any of its terms. The agreement of the contracting parties necessarily presupposes a free, honest and serious exercise of the capacity to argue. If, for any reason, this free consent is not given, the contract is not binding. See Consent. 7.-3D. An alliance against positive law or public order is generally null and void. See nullity; Shep. Key. 163.
As an example of the first, the covenant of one man is that he steals another; and of the latter, a promise from a merchant or merchant that he will not follow his profession or vocation. This, if it is unlimited, is absolutely null and void, but if the federal government consists in not doing business in a certain place, since it will not do business in the city of Philadelphia, the federal government is no longer against public order. See Shep. Key. 164. The covenant to do something impossible is also null and void. Ib. 8.-4. To conclude an alliance, it must be made by deed or under seal, as defined above. No specific form of words is required to conclude a contract, but words expressing the intention of the parties in relation to the subject matter of the contract are sufficient.
See many examples in Bac. Abr. Bund, Ein Selw. P. 469; Com. Dig. Bund, A 2; 3 John. No. 44; 5 Munf. 483.
9. In Pennsylvania, Delaware, and Missouri, it is declared by law that the words grant, negotiate, and sell amount to an alliance, that the grantor has been seized of an estate for a fee, free from all encumbrance committed or suffered by the settlor, and for the silent enjoyment of his shares. But it was decided that these terms in the Pennsylvania Statute of 1715 (and the decision will also apply to the language of law in the other two states) did not constitute a general guarantee, but merely an obligation that the grantor had taken no action or created an encumbrance by which the estate could be overcome. 2 containers. 95; 11 pp. & R. 111, 112; 4 Kent, com. 460.
10.-2. The different types of alliances. They are, 1. Explicit or implicit. 1. An express, contract or contract is an express contract agreed between the parties and included in the deed. The law does not require any particular form to create an explicit alliance. The formal word “Bund” is therefore not mandatory.
2. Mod. 268; 3 kebs. 848; 1 Leo, 324; 1 Bing. 433; 8 J. B. Moore, p. 546; 1 chap.