Download Contract elements - contract remedy and Statue of Frauds and more Essays (university) Civil Law in PDF only on Docsity! John and his grandfather, James made an agreement that James would pay off John’s student loan with no interest as long as John made a payment monthly of $500 for the loan. John sent his grandfather the loan documents and James paid off the loans. John then proceeded to start paying back the loan for about 6 months. Then John lost his job and started using drugs. He did not pay any additional payments. James, the grandfather, eventually filed a suit against John for breach of contract. John claimed there was no contract and that if there had been one, it failed under the statute of frauds because it was not in writing. John also claimed there was no mutual assent to the terms of the contract. What are the elements of a contract, what kind of a contract was this (if any), was it breached and what would the remedy be? Issue Spotter 5 John and his grandfather James entered into an agreement where James would pay off John's student loan with no interest if John made a payment of $500 monthly. After 6 months of payments, John lost his job and started using drugs, and stopped paying. James then filed a suit against John for breach of contract, but John claimed there was no contract, and that it had failed under the statute of frauds since it was not in writing. The elements of this contract are mutual assent, expresses by a valid offer and acceptance; consideration; capacity; legality. The agreement element is the agreement between James (offeror) and John (offeree). In this case, both John and James agreed to the loan repayment terms. John offered to pay James $500 a month in exchange for his grandfather paying off his student loan with no interest. The acceptance element was established when accepted this offer by paying off the loan and John proceeded to make payments for 6 months. This mutual assent has established the agreement element of the contract and made it legally binding. For a promise to be legally considered a contract, it must be exchanged for an appropriate form of recompense (LII). First, John promised to make $500 monthly loan instalments, and James pledged to pay off the debt with no interest. This is a legally binding contract that all parties must follow. Second, John sent his grandfather loan documents, demonstrating his willingness to enter into the agreement. This also demonstrates mutual assent to the terms of the contract and establishes that both parties considered the agreement. The capacity element in this case is the promise that James would pay off John's college debts with no interest as long as John made monthly payments of $500 for the loan. This proves legal capacity since it demonstrates that both parties were legally capable of entering into a binding agreement and agreeing to the same terms. Also, capacity is determined by a minimum age or mental state (LII). In this case, John was of legal age and without mental impairment, thus he was able to enter into a legally binding contract with his grandfather. John also provided loan documentation to James before making the payment. This might imply that there was a formal agreement in place and that it served as proof of the contract's existence. The legitimacy of the contract will ultimately be evaluated by the court. The court will weigh the facts and decide whether or not the contract between John and James is legally binding. According to the implied-in-fact contract, it does not necessitate a meeting of the minds or mutual assent (LII). It might be deemed an implied-in-fact contract in this case. John and James' agreement was not written, but it was represented by their actions. Even without a formal written document, the Statute of Fraud enables parties to enter into a legally binding agreement. (LII). Additionally, both parties confirm their mutual consent to the terms of the agreement: 1)
