In any undertaking or transaction, it is essential that the parties are guided by law. Contracts play the role of binding the parties to an agreement that they are obligated to perform some task. Basically, a contract refers to an agreement between two or more parties. The enforceability of a contract in a court of law is essential in that the parties to a contract can get a remedy if the other party fails to perform their duties. A typical contract should have an offer, acceptance and legal relations (Beale, 2002). These are necessary for any contract to be enforceable.
In this paper, I will use the sale contract between Jiaozuo Wan Fang Power Company and Henan Electric Power Corporation to analyze the legal issues of a contract. This contract specifies the obligations of the seller and the purchase which are conditioned upon various principles. For instance, the contract stipulates that the parties will engage in a mutually satisfactory dispatch. The contract also gives detailed information about what is to be transacted between the two parties and some legal issues that may arise from this contract.
Effectively, Jiaozuo Wan Fang Power Company Limited is the offeror while Henan Electric Power Corporation is the offeree. All contracts have similarities. For a contract to be legally valid, it must have an offer, acceptance, intention to create legal relations and consideration (Singh, 2010). Other legal issues that might arise in this particular contract include terms that are silent.
This contract does not expressly state the method that the offeree is required to use in order to communicate his acceptance. There are ways that can be used to communicate acceptance. The contract expressly indicates that the purchaser is not required to take less than the minimum products. Because this contract comes into force only upon the offeree appending his/her signature, then it is presumed that acceptance can only be communicated by way of signing the contract. The contract is written in express terms and does not state when acceptance will be communicated by the offeree.
Failure for the above contract to expressly state when acceptance is communicated may lead to the issue of silent terms in a contract. A contract is either express or implied. Express contracts are those in which terms all terms are explained. On the other hand, implied terms have some of their clauses silent. The offeree is expected to have an understanding of the implied terms, and it is immaterial that he/she does not understand the terms.
This contract also explains the liabilities that the parties are expected to take. In section 17 of the contract, the seller explains the circumstances under which the company can indemnify the buyer. Silent terms in a contract are enforceable (Burnett, 2010). For this to be the case, the seller should prove that the terms he/she considers to be silent in a contract are universal to the extent that the purchaser could understand them even without reading hem in the contract.
Upon appending the signature, the purchaser in this contract would have communicated his intention to be bound by the terms and conditions. Execution of the contract involves transfer of the goods or services from the company (Jiaozuo Wan Fang) to the corporation (Human Electric Power). Change o possession indicates execution of the contract.
Beale, H. (2002). Contract law. Oxford [England: Hart Pub.
Burnett, R. (2010). Commercial contracts legal principles and drafting techniques. London: Thorogood.
Singh, A. (2010). Business and contract law. London: Thorogood.