Purchase Solution

Definition and example of a contract. Oral contracts

Not what you're looking for?

Ask Custom Question

You can tell by his mood, that you have irritated Boullebaker by a mistake you made in preparation for a contract case. He is not convinced that you know all the basics about contracts. Boullebaker says he won't allow you to touch another contract case until you have evidenced your knowledge by doing the following:

Find an example of a written contract that you have entered into. It could be a purchase agreement for a home, car or furniture, a warranty agreement, or a contract for home repairs. Identify the features that make it a valid contract.

Write a short contract to provide a service to someone. You may request monetary reimbursement or something else of equal value from the other party. As an example, you may write a contract with one of your children to provide a certain reward (such as a car or a vacation) if the child maintains an agreed upon grade point average at school. Make certain that your work satisfies the basic requirements of a contract.

Next, Boullebaker tests you by asking your thoughts for the following scenario:
You invite a painter over to your home to discuss some painting that needs to be done. You discuss what needs to be painted, the desired color scheme, and the final price. Nothing is written down. You agree on terms and the painter then performs the work, for which you pay him. Have you entered into a contract? If so, what type?

Purchase this Solution

Solution Summary

The solution defines the elements of a contract by using a example between a CPA firm and a client. Next is a short written contract using the BrainMass service as the subject of the contract. Oral contracts are discussed including their validity.

Solution Preview

CPAs engaged in tax practice use an Engagement Letter which contains the basic elements of a contractual agreement:
1. meeting of the minds
2. offer and acceptance
3. consideration
4. performance
5. good faith
6. enforceable
The engagement letter states the type of service to be performed as an offer which, when signed, is acceptance. The consideration is usually stated as 'standard fees at ...

Purchase this Solution


Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Basics of corporate finance

These questions will test you on your knowledge of finance.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.