Why should you make sure all details of an agreement are included in a contract?
Dyer purchased a used Ford from Walt Bennett Ford for $5,895. She signed a written contract, which showed that no taxes were included in the sales price. Dyer contended, however, that the salesperson who negotiated the purchase with her told her both before and after her signing of the contract that the sales tax on the automobile had been paid. The contract Dyer signed contained the following language: The above comprises the entire agreement pertaining to this purchase and no other agreement of any kind, verbal understanding, representation, or promise whatsoever will be recognized. It also stated: This contract constitutes the entire agreement between the parties and no modification hereof shall be valid in any event and Buyer expressly waives the right to rely thereon, unless made in writing, signed by Seller. Later, when Dyer attempted to license the automobile, she discovered that the Arkansas sales tax had not been paid on it. She paid the sales tax and sued Bennett for breach of contract. What result?
A contract is very important whenever one is making any form of a business deal. Contracts are used primarily for evidence. A written contract would help someone remember what was agreed upon, the dates and all the details of the person that you entered the deal with are contained in a written document, such that if a dispute arises, one is able to produce the contract and gives the judge the proof of what was agreed on (Legal, 2012).
Third parties also have their rights in contract agreements. Once a contract is determined to be valid and legal, attention turns to the rights and duties of the parties ...
The statue of frauds and the rights of third parties are determined.