Legal Environment Elements of a Contract

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Legal Environment Elements of a Contract

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 three scholarly sources in addition to the textbook.

Sample Solution 

Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.

For this contract considered valid and thus, enforceable by a court, each of the following criteria must be present:

  1. Offer (Would You Like to …?): The two parties to the contract are the offeror (the person making the offer, the employer) and the offeree (the person who has the power to accept the offer, the employee). The offer between the two parties should be legally binding for the contract to be enforceable.
  2. Acceptance (I Agree to Your Offer): Acceptance must be voluntary. The employer and the employee should be mutually bound and agree to the terms of the contract without external factors influencing the acceptance of the offer.
  3. Consideration (something of legal value given and received by each party to the contract): Consideration is the value that each party brings to a contract…Read more
  4. Capacity (mental capacity or legal ability): The contract requires that each party be legally competent and have the mental capacity to agree to the terms.
  5. Legality (of purpose): The contract should be legal. If the motive of the employee is illegal, then the agreement is not valid.

Legal Environment Elements of a Contract

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