Business Law Rights and Obligations

Question: Discuss about the Business Law for Rights and Obligations. Answer: Introduction: A Contract is a document that is legally binding between two parties to perform some specific acts against the amount of considerations whether paid or promised to be paid in full or in part. The contract must contain the feature of offer and acceptance between the contracting parties including the rights and obligations of the buyer and seller respectively. Further, the contract must contain the intention of parties to create legal and lawful relation for the contractual action (Sykes-Muskett et al. 2015). On the contrary, an agreement is a document where two or more parties exchange promises for certain actions with a mutual agreement. An agreement may be in a written form or it can be in oral form against some form of considerations. Agreements may be of different types like void agreement, implied agreement, voidable agreement, and conditional agreement (Sovern et al. 2015). Accordingly, it can be said that if an agreement is legally enforceable then it is considered as contract. An agreement may formal or informal but a contract is always a formal hence it is clear that all contracts are agreement but all agreements are not contract. For instance, a promise between four friends to lunch together at a specific place is an agreement but not a contract. Since this agreement does not involve a legal enforcement between the parties as well as there is no formal consideration involved therefore, it cannot be regarded as contract. An agreement is regarded as the contract basis while a contract is a document or structure created on the agreement basis. Accordingly, in case an agreement is breached then a legal remedy does not arise to the aggrieved party whereas if a contract is breached then the aggrieved party is liable to compensate the damage caused due to breach of contract (Sovern et al. 2015). Hence, all the contracts are agreements but all agreements ca nnot be regarded as contract. Reference List Sovern, J., Greenberg, E.E., Kirgis, P.F. and Liu, Y., 2015. Whimsy Little Contracts with Unexpected Consequences: An Empirical Analysis of Consumer Understanding of Arbitration Agreements.Md. L. Rev.,75, p.1. Sykes-Muskett, B.J., Prestwich, A., Lawton, R.J. and Armitage, C.J., 2015. The utility of monetary contingency contracts for weight loss: a systematic review and meta-analysis.Health psychology review,9(4), pp.434-451.