The paper "Agreement between Marquis and Ruth" is a great example of a business case study. For a contract that is legally enforceable to be formed, the following main requirements must be put into consideration; an agreement, there must be an intention and consideration. The agreement should be made legally bound at the time it is being made. This is because any agreement is can be legally enforceable if and only if the involved parties at the time they were making an agreement they made it legally bound. In consideration, there must be a promise that convinces the party to come to an agreement.
The parties also should be competent when they sign an agreement. This ensures that there is a strong contractual capacity (Horwitz, 2001). The set agreement can take any form that is, under a seal or even written form. In consideration, a promise made becomes enforceable if thereby the law if it is made by a seal. In this rule of consideration, there must be a goal that one has to meet in order to gain the promise made.
In the case study, Ruth’ s finance, Marquis is promised $ 185 as his salary should he join that finance company (Hurst, 1970). He admits the offer and joins Ruth Company. He is further promised a salary of $205 due to his continued performance. Later his salary is reduced to normal since there was some downturn in the industry. An intention in any contract means that every single person who is involved in any contract must have the intention to be bound by that specific agreement. Every individual should have a legal obligation and has to be serious about that obligation.
The management had agreed to offer Marquis a salary of $ 205K to please him due to his effort. The intention, in the case of Marquis and Ruth, shows that Ruth expected continuous growth of the company without downfalls while that of Marquis was to have an increment in his salary (Parkinson, J.E. , 1995). The agreement is broken when Marquis does not meet the target by Ruth that is the reason she decides to reduce his salary back to normal. A contract is having all the properties, that is, the contract has an offer that is provided by one party to another having an acceptance of the offer.
It also has an agreement that is legally binding has also a legal capacity that allows you to get into the contract freely without being forced by the other party (Kelly, Holmes, & Hayward, 2005, P 64). It also has a clear consent of the involved party that may be illegal in case there are the following circumstances arising; there is a statement which is false, the influence is undue, or the offer is also illegal (Metzger, Dalton, and Hill, 1993). Step 3. Since an agreement is legally enforceable only if the parties involved at the time it was made to be bound legally, assessing the circumstance involving Marquis and Ruth, the agreement between Marquis and Ruth is substantial.
Ruth promised to pay Marquis $ 185K to join his firm. Marquis goes ahead and resigns from his previous workplace at Red Rock Company. He agrees to the term that Ruth set on his salary of $ 185K.
Ruth and the management come to an agreement to increase Marquis Salary to $ 205K (Loss and Cowett, 1958). The presumption is that the two parties were legally bound. There was evidence that Marquis and Ruth had the intention to be bound together by the time they made the agreement of increasing the salary. The salary is then reduced to normal due to the downturn in the business. The agreement must have an intention that is set between the involved parties. The intention must also be in line with the promise that has to be set between the parties.
Marquis is promised an increment in his salary, and this is even written down as an agreement between the two parties. The increment in his salary was to motivate him in his effort at work (Pierce, 2010).
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