A contract has been defined as either a written or a spoken agreement that is made between two parties who have the same interest. An agreement is done for purposes of employment, tenancy, or even on sales that are basically intended to be enforced by the existing law (Anderson, Hu, & Winchester, 2007). A contract plays a big role in documenting a given agreement between two parties where the two parties are supposed to play their part as stated in the contract. During the process of making a contract, one of the involved parties is expected to come up with an offer for the other party. If the second party involved is interested with the offer from the latter party, then they come together for purposes of making their contract to be legally binding (McDonald, 2005).
The legal implications that crop up from the act of entering into a contract usually depend on the terms as well as the conditions that are agreed upon by the parties involved in the process. Different countries tend to have different legal implications of contracts including Australia. As such, this paper will look at some of the legal implications that in existence in Australia in the first section. In the second part of the paper, a sample contract is given that is made according to the standards of the country.
Section 1: Legal Implications of Contracts
Breach of Contact
By definition, breach of contract has been referred to as the real failure of even a refusal of any of the parties that are engaged in the contract to perform according to the stated terms as well as the conditions of the contract. Some of the factors that affect contract, breach include, amongst others a repudiation of the contract obligations long before the contract begins (Anderson, Hu, & Winchester, 2007). The other cause of contract, breach includes that of any of the contract parties being involved in an obligation sometime before the completion of the contract and that of engaging in a behavior that significantly affects the performance of the contract negatively. One of the factors that may affect the performance of the contract is that of intentionally affecting the performance of the other party member (McDonald, 2005).