The Open Offer: Consideration, Mutuality Of Obligation

Contracts
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Contracts
A contract is a legally binding agreement that is between two parties. It is important to note that not all contracts are required by law to be in writing as some can be orally made between parties. However, there are those that are required to be in writing for them to be legally binding such as when they involve buying or selling items ("Elements of a Contract – Contracts", 2017). There are six components to a binding contract, which include; an offer, acceptance of the offer, consideration, mutuality of obligation, competency and the written instrument.
In the facts of the case between Jimmy and Tommy include an offer placed in writing to Tommy by Jimmy. Jimmy made the offer by stating that he would sell the Painting to Tommy for half a million dollars and signed it. Jimmy also indicated that he would give Tommy one month before the contract becomes void. After two weeks, Tommy is seen to accept the offer, which in this case is within the timeframe of the valid contract (Pannone, 2015). According to the case, Tommy is also seen to have the competency or the capacity. However, Jimmy accepts another before within the one month he had made the offer to Tommy.
In the evaluation of the case, it is important to state that the there is a breach in contract. One of the aspect that has to be considered is that there is a valid offer that is made by Jimmy in writing and signed. The fact that Jimmy made it clear in the letter that he is going to offer Tommy the painting for the half a million-dollar price and within a month and then signed, makes this a valid offer ("Elements of a Contract – Contracts", 2017). It is important to note that, Tommy does not have to sign t...