Daily Archives: October 25, 2017

The Penalties of Breaching a Contract

A contract is a legal agreement. The parties to the contract have made an obligation to fulfil a promise they made to each other. Example, Mary promised to sell her car to Mike for a certain price. Mike agrees to buy the car at the price and promise to pay Mary the money the following day. Later before the transaction takes place, Mary got a better offer for the car from another friend, Chris. Mary then sells the car to Chris. Mike finds out about this transaction and is upset. Here we have a classic situation of breach of a contractual agreement. Mary by promising her car to Mike for a fixed price is the offeror [the person making the offer] and Mike is the offeree [the person accepting the offer]. There is this general misconception that perhaps Mike should have gotten this agreement in writing to prove his point or that he should have given Mary some sort of deposit when he entered into the agreement.

The truth is, a contract can be made orally or in written form, or a combination of both. The law does not particularly expect a contract to be evidenced in writing unless it is for the sales of land. Naturally, a written agreement is easier to prove. So in this situation between Mary and Mike, there is a case of breach of contract. Mike might seek some form of remedy.

One possible form of remedy is that Mike might legally force Mary to re-acquire the car from Chris and resell it to him at the original agreed price. Another possibility is that Mike might seek some form of damages from Mary for the breach of contract. In this case it might be difficult to ascertain what would be a good sum to be …

Posted in hotel, travel | Tagged , , , | Comments Off on The Penalties of Breaching a Contract