Contract Law Assignment Example | Topics and Well Written Essays - 3250 words

Contract Law - Assignment Example There parties entering the contract must mutually understand what the contract purports to cover. This phenomenon is called ‘meeting of the minds.’ There must be offer and acceptance in a legally binding contract. The contract constitutes an offer to one party and the consequent acceptance by the other party. The element of offer and acceptance thus involves the expression of willingness of both parties to complete the contract. The parties entering the contract must belong to the age of the majority. However, some contracts may involve the minors such as the contract of will. There must be a possibility of performance in a legally binding contract. The contract must be physically or legally performable. The contract must portray the intention to create legal relations. A general principle, the social promises are presumed not to be legally binding (Turner & Martin 2004). There must be legal consideration in a contract. The legal consideration constitutes the value of the exchange depending on the nature of the objects present in a contract. There must be a legal object in a contract. The contract should not, by nature violate the policy of the public. Otherwise, illegal contracts are enforceable. However, a contract that has all the essential elements is valid.... Adam does work, but Cynthia refuses to pay him. Issue Whether the contract is illegal or not Rule The damages arising from the material contributions of an individual to the performance of an illegal act, with the knowledge that the materials are intend to propagate the illegal activities are irrecoverable. The claim by the plaintiff is aims at settlement of the payments using the earnings from the illegal business. Analysis The case between Adam and Cynthia constitutes illegality by virtue of the element of prostitution. Prostitution at common law is always an act that promotes sexual immorality. All acts that promote sexual immorality are prohibited hence are unenforceable. The difference between an illegal act and an immoral act is so thin that the applied principles are similar in either case. The case of Pearce v Brooks (1866) Lr 1 Ex 213 Exch tries to explain the nature of this case. In the case, Pear the plaintiffs, Pearce coach builders allowed Brooks, the prostitute to hire their brougham. Brooks was going to use the brougham in her prostitution business of attracting her clients. At common law, contracts that promote sexual immorality are unenforceable due to their illegality. Pearce was aware of the business that that Brooks was going to transact, prostitution. Brooks refused to honor the obligations of the contract. Pearce claimed compensation for the damages but, the court refused. The court held that he had participated in an illegal contract with the knowledge of its illegality. The jury did find no evidence that the payments that Pearce was claiming from Brooks were to be derived from the illegal business. However, there were reasonable grounds to believe that Pearce while giving out the brougham for hire knew that