Elements of a Contract (Case study)
Elements of a Contract
Therefore, a valid contract that is enforceable by courts has to contain the following certain elements (Stapleton and Williams, 2004):
- Offer and acceptance
- Written
- Legality of purpose
- Mental and/or legal capacity
- Consideration
Suppose that the Fabulous Hotel hires you as head chef under a two-year employment contract. After two years, another hotel wants to hire you. However, in the original employment contract you signed with the Fabulous Hotel, the following paragraph appears:
“The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ.”
- Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.
- Explain why this contract is governed by common law or the Uniform Commercial Code (UCC).
- Examine at least two circumstances in which this non-compete agreement would be unenforceable.
Submit a four- to five-page paper (not including title and reference pages).
Your paper must be formatted according to APA style as outlined in the approved APA style guide and must cite at least four scholarly sources in addition to the textbook: Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc.