Contracts are components of the business law Coursework Example

Business Law 1 Week 11 Discussion Question Name Institutional Affiliation Abstract One of the vital components of the business law is contracts. Whereas they help in setting grounds for proper coordination and delivery of promises, contracts demand consideration given that the participating parties must be willingly involved and not coerced. In this particular essay, a case is presented concerning an insurance company (Globe Life Insurance Company) and a potential beneficiary (Nancy Leonard). Following the knowledge of a perceived need for life insurance at Nancy Leonard’s home, Globe decides to pursue her to buy life insurance for her four children after the death of another due to drive-by shootings in Los Angeles. This paper argues that a contract existed between the two parties by Nancy having signed; however, there is no fundamental legal foundation that binds Nancy Leonard to pay the life insurance. As such, Nancy Leonard must not pay for the insurance. On the other hand, Tom Raskin’s action was unethical given the psychological status of Nancy Leonard at the time of signing the contract. In this case, the contract is voidable because there was no bargained-for-exchange between Nancy and Raskin. Keywords: contract, consideration, promise, bargained-for-exchange Paper Ordinarily, contracts are a fundamental legal framework for reaching a binding agreement between two or more participating parties. However, the practicality and lawful functionality of contracts must always meet certain thresholds for them to uphold. One such criterion is a consideration, which translates to a bargained-for-exchange or merely something of legal value (EZ Casebriefs, 2015). Irrespective of the situation, contracts are pivotal in entrenching legalities to verbal or written agreements between the parties involved. In the case presented, Globe Life Insurance Company is taking advantage of the situation to market their product to an individual who they know is in dire ...