The applicant, an oil operator, entered into an option contract with the defendant, a shipbuilder. The agreement gave the applicant three options, each for an order for four tankers. It provided that, in the event of an option exercised, delivery dates between the parties would be “agreed upon by mutual agreement,” but the defendant “will do its best to have a delivery” in 2016 for Option 1 and 2017 for The Two and Three Tankers. It also provided for the parties to enter into shipbuilding contracts within 10 days of the exercise of an option. The parties and their subsidiaries have also entered into other agreements, including four shipbuilding contracts that each order a tanker. As part of normal business practices, parties wishing to make a formal written document to express their agreement necessarily wish to discuss and negotiate the proposed terms of the agreement before entering into the agreement. They often accept all the conditions to be included in the written document provided before it is produced. Their consent may be expressed orally or by memorandum, correspondence or other informal writings. The parties may “enter into a contract,” i.e., they may commit to a formal written agreement with certain conditions at a later date. If they accept all the essential elements to be included in a formal document with the intention of making their consent mandatory, they have met all the requirements for the drafting of the contract.
The fact that an official written document is subsequently drawn up and signed does not change the binding validity of the original contract. Bogue is an important warning to the parties that even if they have not agreed on all terms of the contract, they may still have reached a binding agreement when the main terms have been agreed. Even something as important as the inclusion of publications can be included in a contract after the fact. However, in certain circumstances, certain commitments that are not considered contracts may be applied to a limited extent. If one party relied on the other party`s assurances/promises to its detriment, the court may apply a just doctrine of Promissory Estoppel to compensate the non-injurious party to compensate the party for the amount it received from the appropriate appeal of the party to the agreement. An agreement between private parties that creates reciprocal obligations that can be imposed by law. The fundamental elements necessary for the contract to be a legally enforceable contract: mutual consent, expressed by a valid offer and acceptance; Appropriate consideration Capacity and legality. In some states, the counterparty element can be filled in with a valid replacement.
Possible remedies in the event of a breach of contract are general damages, consequential damages, damages and specific benefits. The unacceptable nature means that one or more clauses of the treaty are unfair and that the contract simply cannot be allowed as it is written. In the event of an unacceptable, the agreement may be considered null and void or a court can enforce only the parts of the contract and rewrite the unscrupulous terms.