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The mirror image rule states that

30/11/2021 Client: muhammad11 Deadline: 2 Day

Welcome to week 3! This week deals with regulations, administration law and the elements of a contract. This week’s assignments include reading chapters 5, 9, 10 and 11 of the textbook, two (2) discussion board questions, and an assignment. As for the discussion boards, I expect you to post your initial posting by Thursday and respond to at least two (2) of your classmates posts. As for the discussion questions, you can use your textbook as a reference as well as other outside academic references. The rubic for the discussion boards can be found in the class room. Please email me with any questions.

As you probably know, we deal with contracts in personal and professional settings. For example, every time we use a credit card we are engaging in a contract. Our mortgage or lease is a contract. Businesses use contracts every day from purchasing and ordering to vending. To form a contract, you need three (3) elements: an offer, consideration and acceptance. If any of these elements are missing a contract has not been formed. Contracts may be verbal or written. However, it is harder to provide the elements of a verbal contract as there are no written evidence to the terms of the contract. With a verbal contract, it becomes a “he said, she said” battle of testimony to prove the terms and conditions of a contract. Additionally, there are certain contracts that must be in writing. Each state has its own rules for what specific contracts must be in writing to be enforceable. When a contract is required to be in writing to be valid, the rule is called the “four corners of the writing” rule. This rule states that the terms of the contract must be within the four corners of the writing; if a terms is not there then it is not a term (Liuzzo, 2013). Last, many contracts can be avoided or are unenforceable due to certain defects. An offer is a definite, clearly stated offer to do something. By definition an offer is a proposal made by one party (the offeror) to another party (the offeree) that indicates a willingness to enter into a contract (Liuzzo, 2013). An offer does not include ball park estimates, requests for proposals, expressions of interest, or letters of intent. As for an acceptance, only what is offered can be accepted. This means that the offer must be accepted exactly as offered without conditions. This is often referred to as the Mirror Image rule. If any new terms are suggested this is regarded as a counter offer which can then be accepted or rejected. In order for a contract to be binding it must be supported by valuable consideration. That is to say, one party promises to do something in return for a promise from the other party to provide a benefit of value (the consideration). Consideration is what each party gives to the other as the agreed price for the other's promises (Liuzzo, 2013). Usually the consideration is the payment of money but it need not be; it can be anything of value including the promise to do something, or to refrain from exercising some right. There can be many offers and counter offers before there is an agreement. A valid contract is an agreement resulting in an obligation that is legally enforceable (Liuzzo, 2013). A contract that provides for an illegal purpose is not valid and therefore, not enforceable. An example, would be a contract entered into between parties for the buying and selling of drugs. This is against public policy and illegal, therefore, it is not valid and not enforceable.

I have attached a video on contract formation. Please review. Administrative law is the body of rules, regulations, and decisions created by administrative agencies (Liuzzo, 2013). It governs and defines the powers of government agencies. Congress has created administrative agencies to oversee or carry out specific governmental functions and then empower those agencies to create the rules by which they will operate. Administrative agencies are the governmental bodies that are responsible for the control and supervision of a particular activity or area of pubic interest (Liuzzo, 2013). Examples of administrative agencies include but are not limited to the Environmental Protection Agency, Federal Trade Commission, the Internal Revenue Service, and a state’s Board of Education. Additionally as for the executive branch of government, the president uses administrative agencies to help carry out the responsibilities of the office. When federal agencies enact rules, they must follow the guidelines set forth in the Administrative Procedure Act (APA), which specifies the procedures agencies must follow in promulgating new rules. As long as an agency creates rules in accordance to the Administrative Procedure Act, such rules have the force of law. Overall, there are two (2) main function of an agency: assisting in carrying out vital government functions and exerting regulatory control.

For additional information, please review www.jec.unm.edu/education/contract-fundamentals-part-2 and www.rocketlawyer.com/article/contracts-101:-elements-of-a-contract.rl I hope that the above examples help you to better understand this week’s material.

References:

Liuzzo, Anthony. (2013). Essentials of Business Law. New York: NY. McGraw Hill.

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