Contractual Agreements

A Contractual agreement is an contract that two or more parties agree to the terms of. Recently, my husband and I contracted with a mutual friend to purchase his used 2000 Pontiac Bonneville for $2500. When we agreed to purchase the car, we signed a contract that we printed of the internet that expressed both the rights and obligations for both parties. According to The Columbia Encyclopedia, (Sixth Edition, 2008. Encyclopedia.com, 15 Feb. 2009 http://www.encyclopedia.com) a contract is defined as a promise, enforceable by law, to perform or to refrain from performing some specified act. In my case, the promise was that we would pay $208.33 per month for 12 months until the price of the car was paid in full to the seller. This contract also stated that the car was being sold as-is, and that the seller was not responsible for any repairs the car needed. The contract was officially a contract because both parties agreed to it and signed it.

A non-contractual agreement is an agreement that is not necessarily agreed to both parties, nor does it have to accomplish a goal, or be legal. It is also an agreement that can be signed by a minor. For example, if a minor child purchased a cell phone and signed a two year contract with a service provider, the minor could cancel the contract before the two years were completed without having to pay a cancellation fee. Under the law, minors are not bound by their contracts, but they are responsible for the value of goods received in contracts made for necessities of life. Otherwise, a minor may denounce his contracts at any time and on attaining majority may elect whether to affirm or repudiate them. ("contract." The Columbia Encyclopedia, Sixth Edition. 2008. Encyclopedia.com. 15 Feb. 2009 http://www.encyclopedia.com)

References:

"contract." The Columbia Encyclopedia, Sixth Edition. 2008. Encyclopedia.com. 15 Feb. 2009 .

Business Law Today, The Essentials; 7th ed. United States: Thomson-Southwestern., 2006. Jentz A.Gaylord...