Law
This is a Collaborative Learning Community (CLC) assignment.
The purpose of this assignment is to examine key principles of contract formation.
For this assignment, assume you are planning a birthday party. You will need to create a story line that provides background information relevant to the event, such as who the party is for, the number of people attending, and your overall vision for the party in terms of the venue, food and beverages, and entertainment. For the event, you should assume that you would be required to contract with a minimum of three vendors to include a party venue, catering, and entertainment. You may choose to add other elements to the party, such as transportation, photography, party memorabilia, etc.
Complete the “Contract Formation Chart,” located in the topic materials. For each vendor, you must provide the following information.
Identify the name of the vendor.
Identify and clearly state the offer for the contract.
Explain the method of acceptance for the contract.
Explain the elements of consideration for the contract.
Identify the factors that affect the formation of the contract.
APA style is not required, but solid academic writing is expected.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are not required to submit this assignment to LopesWrite.
ANSWER
Contract Formation Chart
| Contracted Service | Name of Vendor | Offer | Method of Acceptance | Elements of Consideration | Factors That Affect Contract Formation |
| Venue | Sterling banquet hall | Sterling banquet hall will offer services linked to banqueting. Sterling will require a deposit of about $250 to make reservations for the birthday party. The rest of the payment will be done on the day of the party before it begins. Sterling has three venues which will be sent to select the most appropriate depending on the services and facilities being offered at each venue. | For this contract, an express acceptance will occur. Express acceptance is whereby the person explicitly and clearly accepts to pay the draft that has been stated for payment. The express acceptance will be an oral expression which indicates that the drawee has seen the venue and does not have any disputes. | The element of consideration is bargained exchange. In the bargained exchange both parties have to be present and offer the demands of the consideration. In this case, both parties have offered value to the other through venue and payment. The doctrine of consideration guarantees that promises are enforced only when the parties have exchanged something of value. | Incapacity is one of the main factors affecting contract formation. Incapacity entails the lack of potentiality that may characterize a contracting party. For instance, there is a general rule that to form a valid contract parties need to have the capacity to do so. Anyone below the age of 18 years old does not have a capacity to enter into any legal contract. |
| Catering | Citadel catering | Citadel catering offers food preparation and presentation services to clients. They accommodate events of any size from small, to large; personal and business oriented events. Citadel will charge $25 per person where 30% of the cost will be paid as deposit while the remaining balance will be paid after offering the food and beverage services. This offer was emailed to the contracting party. | The contract terms will be communicated and accepted by the contracting party. The contract will focus on a written to ensure a reasonable acceptance. | The element of consideration has to be given to ensure that the contract is legally binding with sufficient bargained for value, that is given by the promisor in return for the promise. The parties have offered consideration since both parties have something of value to the other party. For instance, the catering company will offer food and catering services while the other party will make payments. | Some of the factors that could influence contract formation are capacity, legality, writing and fraud. For this case, the contract is legal and both parties are in a capacity of entering into contracts since neither of the parties are mentally impaired, minor or intoxicated persons. There are no indications that the contract is fraud since the agreements have been done in writing and accepted by both parties. |
| Entertainment | J&D Entertainment | J&D entertainment promises to offer musical entertainment as requested for 4 hours at $450. The contractor will pay a deposit of $250 and the rest of the payment will be done after the end of the event. J&D will allow the contractor to select their type of music and make a playlist from the selected music. They will also offer microphones and play clean versions of all the latest music and emcee all activities using wireless microphones. When requested, J&D ca extend the entertainment time for $100 per every additional hour. | J&D will agree to the terms and condition with the contractor and conform their availability on the chosen date and time. The contract will be in a written form which will clearly indicate that both parties are in agreement and that J&D has accepted to offer entertainment services during the party. J&D will be provided on the desired date between the specified times (no more than 4 hours). | Consideration has to be given to ensure that the contract is legally binding. For this case, the element for consideration is a bargained for exchange that has a legal determinant to the promisor and a legal benefit to the promise. | Some of the major factors affecting the entertainment agreement are frustration, illegality and mistake. Mistake can be discovered during the contract formation which renders the contract to be void. The company being contracted for entertainment may not have legally entered into the contract. The entertainment company may fail to have songs that the contract demands for and plays outdated music. The company may lack backup in case of musical instruments failure at the middle of the event which leads to much frustration. |
| Other: | Pixel Studio Production | Pixel Studio Production will offer photography and film services to the contractor during the event. They offer other services such as booth, unlimited prints and props as additional services. They charge $500 for 3 hours and $100 for every additional hour. | The offeree will accept the offer through making a written statement that will be used to demonstrate the acceptance of the offer. | Both parties are offering consideration since they are offering something of value to the other side. J&D is offering entertainment services while the contractor will make payments for the services rendered | Frustration and mistake are the major factors that will affect the photography contract formation. Pixel Studio may fail to show up during the event or their equipment fail at the middle of the event. |
| Storyline Summary
Ken, Alicia and Dan are planning to have a birthday party for their friend Jean who is turning 18. They all live in Houston Texas which means that the party venue should be near their homes in order for their families and friends to easily attend. The party is intended to have around 50 guests. They intended to have the party for around 4 hours where they will offer food and beverage, venue, photo booth as well as musical entertainment. They require different vendors to offer services such as party venue, catering, entertainment and catering. They have to consider the services being rendered and engage in a legally enforceable contract once it is accepted. The contract information will include the name of the vendor, the services being offered, the element of consideration, acceptance and the factors affecting the contract formation.
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