Contract refers to the agreement of having a lawful element entered through voluntary actions between two or more parties. These parties may be individuals, groups, states among other groups. The parties have an intention of creating one or more legal obligations among or between them. There are elements in every contract that must be respected by all parties involved in the formulation of the contract. The law of contract stipulates respect for all principles in an agreement. Since the contract is not embedded to one party, honoring the stipulations for the contract is a core requirement. This means that all parties must be willing to revere the rule of law and act guided by the stipulations provided by law. The two vital elements that need be considered in any contract include offer and acceptance (Larson, 2010). This introduction would be an extremely significant element for Simon. It would assist him in obtaining the necessary knowledge and skills to manage the contract that he will sign with the gym chain. There are key requirements that must be enforced for any legally binding contract. These requirements include an agreement and consideration.
The agreement requirement is extremely fundamental in any contract. It is made of offers, counter-offers as well as what is known as the meeting of the minds by the contract law. An agreement is determined by the parties involved being either written or oral, depending on the aims of the contract. Oral agreements are usually short time contracts. For example, if Simon gets a client who needs the weight management chocolate for one day, the agreement needs be oral. On the other hand, if the agreement exceeds one day it may be referred to as long term contract and may require to be written (Wishart, 2012).
In this case, the most reliable form of contract agreement is a written contract. This is because; the gym chain is not out for the weight management business for only one day. A written contract with the gym shows the seriousness and willingness of the gym chain to cooperate in the execution of all regulation and requirements provided by the contract. The gym business does not operate within one locality. It has been spread to various points for business. This means that parties involved in an agreement have to be extremely cautious on the terms that are being involved for the two businesses (Wishart, 2012).
The agreement must consider that the gym chain operates in different premises. Therefore, an agreement must be reached to define the specific premises which the business will be conducted. This may be referred to as the meeting point for the business partners. Simon must emphasize on dealing with the mother of all the gym premises, which may be referred to as the headquarters for the gym chain. This will boost the individual’s confidence on trust for the business contract he signs with the gym.
Also, before getting into the agreement the Simon must get to know the number of attendants in the gym chain. This will equip him with the knowledge of understanding the amount of products that he is supposed to sell to the chain as it may be provided in the contract (AllBusiness, 2009). This would be extremely critical in managing excessive delivery by Simon as well as eliminate all loopholes that may be created for the management of the gym to access excess weight management products.
The agreement must also include a favorable agreement on the delivery of these products to the gym. The delivery cost ought to be incorporated in the tally for the cost of the product to Simon. Therefore, it must be employed while making decision on the cost of the product.
There are several issues that Simon has to consider in his contract with the gym chain. One of the main considerations refers to the obligations and conditions of the contract. This dictates that the parties in the agreement must have a clear understanding of the contract with conditions and obligations in their fingertips. This means that Simon has to undertake his role and respect the contract as it is stipulated in the provisions for the contract.
He must also evaluate how the agreement continues with time. This will assist him in understanding any point at which the contract is likely to be rendered null and void. One of the methods that may be used to evaluate the performance of a contract is the payment method. If delays started being encountered, that may be a precursor of a contract that is likely to fail (AllBusiness, 2009). Simon must be extremely keen to observe any changes that may result to the breach of the contract in the near future. Every party in the agreement must be ready to settle its liability as bound by the contract.
Bearing all these considerations does not mean that these agreements cannot be violated. Having been keen in the cycles of the agreement it would be extremely easy to sense when the contract is in the verge of becoming void (Cohen, 2005). The activity of going against the principles or stipulations of the contract is known as the breaching of the contract.
The activity may not be mutual for all parties, but it may involve only one party who fails to honor his or her liabilities as stipulated in the contract. The failure of one of the parties to conform with the circumstances of the agreement means that the contract is fading with time (Larson, 2010). For Simon to ensure that the contract does not end because of his action or intention, he must comply with all the principles of contract.
Simon must have a clear understanding of what the law stipulates on the premature breach of a contract. It dictates that the conditions put in the agreement must be respected to the end of the contract. If the contract ends before, the agreed time the involved parties must reconcile and agree for the way forward (Cohen, 2005). However, it is advisable for Simon to settle for predetermined decisions upon premature breach of contract. This will favor Simon and save him from losses that he may incur following the breach of the contract by the gym management.
Simon must also understand the various ways through which a contract may be breached. There are forces which may call for termination of a contract. These forces may be intentional or influenced by the other party. In most cases, the law dictates that the cause of the annihilation of the contract should bear the entire burden that goes with the termination (Young, 2010). Therefore, Simon should be extremely cautious before he gets to any contract. This is to avoid pulling out of the contract when it is extremely late. This is since he is likely to lose as he may be required to pay certain penalties based on the requirements of the contract.
Therefore, it is advisable for any individual willing to enter into a contract to first consider the future forces that may influence the contract. Understanding these principles gears responsibility in the individuals to push them live up to the principles of the contract. The breach should be based on mutual consent where individuals may concur on how to distribute the liabilities that may be involved. In this case, Simon should fully understand the terms of agreement during the signing of the contract and during the extinction of the contract.
AllBusiness., 2009, May 24., What Must a Contract Contain to Be Legally Binding? | Company Activities & Management > Contracts & Bids from AllBusiness.com. Small Business Advice | Business News & Articles | AllBusiness.com. Retrieved March 7, 2013, from http://www.allbusiness.com/legal/contracts-agreements/731-1.html
Cohen, N., 2005., Comparative remedies for breach of contract. Oxford: Hart.
Larson, A., 2010, December 2., Contract Law - An Introduction. Legal Help, Directories, Articles, and Forums From ExpertLaw. Retrieved March 7, 2013, from http://www.expertlaw.com/library/business/contract_law.html
Wishart, M., 2012., Contract law (4th ed.). Oxford: Oxford University Press.
Young, M., 2010., Understanding contract law. Abingdon, Oxon, London: Routledge-Cavendish.