Obligation and Duties of the Contracting Parties (Research Paper Sample)

Contracting-Obligation and Duties of the Contracting Parties
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Introduction
The law of contract has emerged as a significant branch of law that promotes cooperation and assurance in the society. Previous research indicates that there is a challenge of fear of retaliation by the companies to bring people to exercise their responsibilities after experiencing failing contracts (Andrews, 2011). The application of effective legal contract facilitates people in the community to appoint qualified individuals to conduct typical responsibilities by complying with contracts approved by the legitimate jurisdiction. Countless businesses are surviving due to the legal contract that eradicates misconceptions about various companies’ deals and human errors. Undeniably, contracts allow strangers to bring about reconciliation in business operations, for instance, lending money to purchase a land, etc. Furthermore, modern business is embracing service contracts that have transformed the enterprise operational activities (Andrews, 2011).
Lawyers indicate that service contracts have made it feasible for industries to contract with other companies to accomplish services, including technical support and hands-on experience (MacIntyre, 2012). These businesses are in a position to incorporate essential information pertaining to prices of various services and the rate at which the firm will carry out the duties. It ensures that companies will not go ahead to finish the task without being refunded by another business party. The contracts promote the existing functional, non-compete agreements that forbid firms from supplying goods in diverse commercial market areas. Business transactions are becoming applicable since the contracts guarantee fixed costs (MacIntyre, 2012). Companies can engage in any cost that they comply within a contract and adhere to certain terms without fear of the cost changing over time. The aim of this paper is to evaluate the obligation and functions of the contracting groups in order to have a coherent understanding of their overall roles in legal contractual matters. For these reasons, the research paper analyzes and comments on the obligation and duties of contracting parties to have a clear understanding of contractual duties in the real world.
Methodology
The use of case studies was a vital methodology for this contracting research. Various observations of case studies have proved fundamental in extracting the necessary data in relation to the requirements and duties of the contracting parties. In particular, in the case study that involves company A, which signs a contract with company B to carry out business activities, company A has the legal capacity to sue company B if it fails to meet its contractual obligations (Andrews, 2011).
The use of continuous questionnaire was another imperative methodology for acquiring relevant information for this research (Barron, 2006). I delivered some questionnaires to a few of the contracting companies, such as Grey Construction. Moreover, I personally received responses from some of their lawyers on the issues of the role of the contracting parties. Most of the lawyers were helpful in revealing the answers brought out in the discussion section.
Utilization of interviews was another fundamental methodology for this research. Some of the contracting institutions were not accepting questionnaire for confidentiality purposes. However, few contractors, such as Structure Tone in New York, were cooperative in responding to interviews on various obligations of the contracting parties. The institution stressed that the capacity to contract is an essential obligation (Davies, 2010).
Results
A survey conducted by American National Construction Contracts indicates that roughly 86% of the contracting parties rely on the electronic forms of contract. Another research performed by the European Commission highlights that approximately 15% of the European contracting groups use traditional modes of the contract to meet their duties and obligations (Chandler and Brown, 2011). Influential contracting companies, such as Grey Construction, reveal that the capacity to contract legality of the agreement and compile necessary contract formalities is a decisive duty of any contracting parties
Discussion
Capacity to contract is a decisive duty and obligation of the contracting parties. The organizations of contract ought to be proficient in age and mindset. In similar terms, the parties to contract must be legitimately competent to finalize a binding agreement. It facilitates the parties’ legal capacity to enter a contractual relationship. As a common rule, most individuals have the capability to engage in a contractual relationship. Nevertheless, in the process, the law of contract prohibits the contractual capability of specific categories of people. These people include infants, drunken individuals, people of unsound mind, as well as insolvent individuals and institutions. Negotiating groups need to realize that the contracts entered into by a minority are voidable or void reckoning on the nature and the intention. These contracts are also binding since they are enforceable by or against the infant, such as contracts for the supply of “Necessaries” and educational agreements (Davies, 2010).
Contracting parties ought to reach a consensus to promote understanding on discussing matters. The companies must arrive at a responsive agreement that incorporates decisive intentions. If the contract has to become effective between the contracting organizations, there needs to be an offer, an acceptance, and a mutual agreement. The offer is an imperative element that the parties need to determine to contract with one another. It refers to an absolute manifestation by an organization or a firm to contract with others. Similarly, it provides a clear intimation by a company that desires to contract with other firms. Contracting groups need to ensure that the offer is clear and definite to eradicate any aspect of ambiguity or suspicion (Chandler and Brown, 2011).
Ensuring the legality of the contract is another vital duty and obligation of the contracting parties. The participating groups need to establish that the contract is legal and may not contravene the common or statutory law. These contracts become void if they constitute a binding agreement that is unlawful and goes against public policy. In particular, a business agreement concerning the distribution of illicit d...