The Law of Contract Coursework Example | Topics and Well Written Essays - 750 words

The Law of Contract - Coursework Example The rule takes into account parol evidence in addition to other evidence as regards to a contract. Contractual capacity is the ability to understand and reason. What is the difference between someone who is crazy versus someone who has been previously declared insane by a judge? How does this affect the contract? Someone who is crazy is simply one who behaves weirdly, while someone who has been previously declared insane by a judge is one who does not have the mental capacity to make a reasonable decision on his/her own. This means that crazy persons can be capable of making reasonable decisions on their own, or they may not be capable depending on the magnitude and source of their crazy behavior. If a judge declares a person as insane, then it is assumed that such person does not have the capacity to comprehend their acts, therefore, any contract that is made by such person after being declared insane is not enforceable. Consideration is one of the requirements of an enforceable contract. Therefore, a simple contract must be supported by a consideration otherwise it is not enforceable as a contract. In other words, consideration is the negotiation aspect of a contract. It can be defined as â€Å"an act or promise offered by the one party and accepted by the other party as a price for that others promise.† (Collins 252). The following are examples of considerations: i. UCC  § 2-204(4): this section acknowledges the legal impact of the contract created through electronic instruments. It originates from means such as the communication between an individual and an electronic instrument or through the communication of electronic instruments of the involved parties.