Contract Law: The Case Study Essay

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A contract is a mutual agreement of obligation between two people or parties reaching consent. In most cases, such commitments are enforced by the law. The arrangement involves one side making an offer, which the other party accepts. A contract consists of such elements as offer and acceptance, appropriate consideration, and legality (Eisenberg, 2018). The parties involved should also have the contractual capacity to commit to the pact. Applying the law in contracting means that there are consequences if any participant forfeits the rules pertaining to the engagement. Therefore, breach of contract necessitates legal measures for failing to honor the deal or hindering the execution of the promise by the other party. This negligence is a case of punitive damage for which the complainant requires compensation for money and time wastage.

The scenario presented involves two individuals, Johnny, who is not a merchant under the Uniform Commercial Code, and his neighbor Mark, from whom he offers to buy a car for $30,000. The latter requires some time to consider the offer to which Johnny agrees and puts down in writing that his proposition is going to remain open for fourteen days. After a week, Johnny sees another car that fascinates him, buys it and informs Mark of his intention to revoke the initial offer. In response, Mark insists that Johnny’s proposal was in writing and still holds it. Johnny apologizes, saying he cannot keep the agreement but promises to give mark $10,000 for the assistance that he had received from him in the previous year around the house. Appeased, Mark accepts only for Johnny to annul his second pledge after a week. The former decides to sue Johnny for breach of contract on the two commitments, buying the car and the $10,000 offer.

There was a valid contract between the two, but Johnny dissipated both Marks’s time and money. He Hastily offers to buy the car instead of informing him that he hasn’t made a final decision and needs to check more cars before settling on one. Johnny also made the mistake of writing down his promise to Mark. Purchasing a car requires a lot of research and inquiries instead of choosing the first option due to the availability of more varieties that might even be cheaper in the market. After being approached by Mark, Johnny should have told him that he had not made a final decision because he still wanted to look around; therefore, he was unwilling to commit. The promising note written by Johnny caused the car to be withheld from other customers willing to purchase it. Mark, the car owner, had the opportunity to sell the machine, but he had the integrity to hold it. Johnny’s actions concerning the car are wrong, and he deserves to pay for them.

There is evidence of an oral contract between Mark and Johnny, although it is related to the first agreement, which Johnny also broke. He acknowledges Mark’s help on his property and offers to compensate him, making the latter cancel his initial disappointment on the car contract. This agreement makes Johnny legally liable to atone for all the words he fails to honor.

Breach of a contract is concluded when a party involved fails to perform their role and doesn’t give a valid excuse. In this view, the elements of a contract are not fully satisfied; therefore, Mark has an entitlement to take legal action against Johnny (Luntz et al., 2017). Having kept his part of the agreement, Mark deserves compensation for indemnity.

Eisenberg, M. A. (2018). The Theory of Efficient Breach. In Foundational principles of contract law . Oxford University Press.

Luntz, H., Hambly, D., Burns, K., Dietrich, J., Foster, N., Harder, S., & Grant, G. (2017). Torts: Cases and commentary ( 8 th ed.). LexisNexis Butterworths.

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contract law in business essay

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Happy Housekeepers has committed an anticipatory breach, letting Mary know in advance that it will not be performing its duties as agreed. There are several actions Mary can take, all of which may take anywhere from a few days, to months, to wrap up. The major problem from Mary’s point of view is that she must turn the clean apartment over to the landlord no later than Friday, or she will incur another month’s rent.

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121 Contract Law Essay Topic Ideas & Examples

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Contract Law Essay Topic Ideas & Examples

Contract law is a crucial aspect of legal studies, as it governs agreements and relationships between parties. Whether you are a student pursuing a law degree or a professional lawyer, writing essays on contract law is a common task. However, coming up with interesting and unique essay topics can be challenging. To help you with this, we have compiled a list of 121 contract law essay topic ideas and examples. These topics cover various aspects of contract law, providing you with a wide range of options to choose from.

The doctrine of consideration in contract law: Discuss its evolution and significance.

Analyze the role of good faith in contract law.

The concept of privity of contract: Is it still relevant in modern contract law?

The impact of the United Nations Convention on Contracts for the International Sale of Goods (CISG) on contract law.

The enforcement of oral contracts: A comparative analysis between common law and civil law jurisdictions.

The role of mistake in contract law: How does it affect the formation and validity of contracts?

The doctrine of promissory estoppel: Its significance and limitations.

Analyze the legal principles governing the formation of electronic contracts.

The concept of unconscionability in contract law: Discuss its application and challenges.

The impact of the European Union's directives on contract law in member states.

The role of public policy in contract law: When can a contract be considered against public policy?

The doctrine of frustration in contract law: Discuss its application and limitations.

Analyze the legal principles governing the termination of contracts.

The concept of duress in contract law: Discuss its elements and effects on contract enforceability.

The role of misrepresentation in contract law: How does it affect the validity of contracts?

The impact of the United Nations Convention on International Commercial Arbitration on contract law.

The doctrine of privity and third-party beneficiaries in contract law: A comparative analysis.

Analyze the legal principles governing the assignment and delegation of contractual rights and duties.

The concept of anticipatory breach in contract law: Discuss its consequences and remedies.

The role of warranties and conditions in contract law: How do they affect contractual obligations?

The impact of technology on contract law: Analyze the challenges and opportunities.

The doctrine of impossibility in contract law: Discuss its application and exceptions.

Analyze the legal principles governing the interpretation of contracts.

The concept of repudiation in contract law: Discuss its effects and remedies.

The role of consideration in gift contracts: Can a gift be considered a legally binding contract?

The impact of the United Nations Convention on the Limitation Period in the International Sale of Goods on contract law.

The doctrine of mutual mistake in contract law: Discuss its elements and effects on contract enforceability.

Analyze the legal principles governing the formation of contracts through electronic communications.

The concept of undue influence in contract law: Discuss its elements and consequences.

The role of implied terms in contract law: How do they affect contractual obligations?

The impact of the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea on contract law.

The doctrine of privity and the rights of third-party beneficiaries in contract law: A critical analysis.

Analyze the legal principles governing the discharge and performance of contracts.

The concept of economic duress in contract law: Discuss its elements and effects on contract enforceability.

The role of fraudulent misrepresentation in contract law: How does it affect the validity of contracts?

The impact of the United Nations Convention on Independent Guarantees and Stand-by Letters of Credit on contract law.

The doctrine of frustration and force majeure clauses in contract law: A comparative analysis.

Analyze the legal principles governing the termination and rescission of contracts.

The concept of mistake as to identity in contract law: Discuss its elements and effects on contract enforceability.

The role of exemption clauses in contract law: How do they affect contractual liability?

The impact of the United Nations Convention on the Use of Electronic Communications in International Contracts on contract law.

The doctrine of illegality in contract law: Discuss its application and exceptions.

Analyze the legal principles governing the performance and breach of contracts.

The concept of undue influence in the formation of contracts: Discuss its elements and consequences.

The role of implied terms in consumer contracts: How do they protect consumers?

The impact of the United Nations Convention on International Factoring on contract law.

The doctrine of privity and the rights of third-party beneficiaries in contract law: A comparative analysis.

Analyze the legal principles governing the variation and modification of contracts.

The concept of duress by threats in contract law: Discuss its elements and effects on contract enforceability.

The role of negligent misrepresentation in contract law: How does it affect contractual liability?

The impact of the United Nations Convention on International Bills of Exchange and International Promissory Notes on contract law.

The doctrine of mistake as to terms in contract law: Discuss its elements and effects on contract enforceability.

Analyze the legal principles governing the performance and breach of construction contracts.

The concept of implied terms in employment contracts: How do they protect employees?

The role of the statute of frauds in contract law: Discuss its requirements and exceptions.

The impact of the United Nations Convention on the Carriage of Goods by Sea on contract law.

The doctrine of illegality and public policy in contract law: A comparative analysis.

Analyze the legal principles governing the enforcement of exclusion clauses in contracts.

The concept of economic duress in the formation of contracts: Discuss its elements and consequences.

The role of unfair contract terms in consumer contracts: How do they protect consumers?

The impact of the United Nations Convention on the Assignment of Receivables in International Trade on contract law.

Analyze the legal principles governing the performance and breach of employment contracts.

The concept of undue influence in commercial contracts: Discuss its elements and consequences.

The role of implied terms in insurance contracts: How do they protect policyholders?

The impact of the United Nations Convention on the Liability of Operators of Transport Terminals in International Trade on contract law.

The doctrine of frustration and force majeure clauses in construction contracts: A comparative analysis.

Analyze the legal principles governing the enforcement of liquidated damages clauses in contracts.

The concept of unconscionable conduct in contract law: Discuss its elements and effects on contract enforceability.

The role of unfair terms in business-to-business contracts: How do they protect small businesses?

Analyze the legal principles governing the performance and breach of intellectual property contracts.

The concept of undue influence in real estate contracts: Discuss its elements and consequences.

The role of implied terms in construction contracts: How do they protect contractors?

The impact of the United Nations Convention on the Carriage of Goods by Land on contract law.

The doctrine of illegality and public policy in construction contracts: A comparative analysis.

Analyze the legal principles governing the enforcement of penalty clauses in contracts.

The concept of economic duress in real estate contracts: Discuss its elements and consequences.

The role of unfair contract terms in business-to-business contracts: How do they protect small businesses?

Analyze the legal principles governing the performance and breach of intellectual property licensing contracts.

The concept of undue influence in employment contracts: Discuss its elements and consequences.

The role of standard form contracts in consumer transactions: How do they affect consumer rights?

The doctrine of frustration and force majeure clauses in intellectual property contracts: A comparative analysis.

Analyze the legal principles governing the enforcement of liquidated damages clauses in construction contracts.

The concept of unconscionable conduct in real estate contracts: Discuss its elements and effects on contract enforceability.

The role of unfair terms in insurance contracts: How do they protect policyholders?

Analyze the legal principles governing the performance and breach of franchise agreements.

The concept of undue influence in insurance contracts: Discuss its elements and consequences.

The role of implied terms in international sale of goods contracts: How do they protect buyers and sellers?

The impact of the United Nations Convention on the International Multimodal Transport of Goods on contract law.

The doctrine of illegality and public policy in intellectual property contracts: A comparative analysis.

Analyze the legal principles governing the enforcement of liquidated damages clauses in employment contracts.

The concept of economic duress in franchise agreements: Discuss its elements and consequences.

The role of unfair contract terms in employment contracts: How do they protect employees?

The impact of the United Nations Convention on the International Sale of Goods on contract law.

Analyze the legal principles governing the performance and breach of technology licensing agreements.

The concept of undue influence in consumer contracts: Discuss its elements and consequences.

The role of implied terms in international construction contracts: How do they protect contractors?

The doctrine of frustration and force majeure clauses in franchise agreements: A comparative analysis.

Analyze the legal principles governing the enforcement of liquidated damages clauses in real estate contracts.

The concept of unconscionable conduct in insurance contracts: Discuss its elements and effects on contract enforceability.

The role of unfair terms in technology licensing agreements: How do they protect licensors and licensees?

Analyze the legal principles governing the performance and breach of supply agreements.

The role of implied terms in international employment contracts: How do they protect employees and employers?

The impact of the United Nations Convention on the International Carriage of Goods Wholly or Partly by Sea on contract law.

The doctrine of illegality and public policy in franchise agreements: A comparative analysis.

Analyze the legal principles governing the enforcement of liquidated damages clauses in intellectual property licensing contracts.

The concept of economic duress in supply agreements: Discuss its elements and consequences.

The role of unfair contract terms in real estate contracts: How do they protect buyers and sellers?

These essay topic ideas and examples provide you with a comprehensive list to choose from when writing about contract law. Remember to select a topic that interests you and aligns with your

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93 Contract Law Research Topics & Essay Examples

📝 contract law research papers examples, 💡 essay ideas on contract law, ❓ contract law research questions.

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  • Contract Law: Elements and Essential Terms Law essay sample: The contract refers to either bilateral or multilateral legal transaction in which two parties or multiple sides make an agreement on a certain object.
  • Contract Law: Introduction to Business Law. Law essay sample: A contract is an agreement to create a legal obligation binding the parties involved. Parties to the contact negotiate terms and make their intentions clear to each other.
  • Case of Australian Contract Law Performance Law essay sample: A case at hand within the Australian law context. A contract was drawn between Adams and Belinda. Under the contract, Adams agreed to construct an extension to Belinda's house.
  • UK Law: Contract Instructions Law essay sample: Contracts are legally binding agreements that regulate relationships between two parties, which are called an offeree and an offeror. A contract cannot exist without four features.
  • Business Ethics and Environmental Laws: A Case Analysis Law essay sample: Business ethics are associated with meeting set standards regarding environmental, social and financial issues with major issues being, environmental pollution, etc.
  • Analysis of Contract Law in Business Law essay sample: A contract is a legally enforceable agreement between two or more parties where one party agrees to undertake some actions while the other party guarantees a consideration.
  • Employee Law and Relations in the United Kingdom Law essay sample: In the United Kingdom labor relations dates back to the time of the industrial revolution which ushered the implementation of laws that govern the relationship between employers and employees.
  • International Carriage of Goods by Sea: Hamburg or Rotterdam? Law essay sample: The area of law covering international carriage of goods by sea has been regulated by international conventions such as The Hague, the Hague-Visby, and the Hamburg Rules.
  • UAE Labour Law and Relations in the Aviation Industry Law essay sample: This paper gives a stringent analysis of the UAE carriers, which are among the fastest growing airlines in the world.
  • Law and Health Care System Administration Law essay sample: There must be a healthy relationship between physicians and patients and hospital and patients to ensure health services are provided without subjectivity.
  • Business and Corporate Law: Human Resource Management Law essay sample: Fair Work Australia focuses on relations in the workplace and the provision of help to employees and employers. One of the roles of FWA involves varying awards at the workplace.
  • Influence of External Sources of Employment Law on Employer Directives Law essay sample: The employment correlation is a lawful concept broadly accepted in countries around the globe to refer to the link between the employer and the employee.
  • Law for Small Business Partnership in Australia Law essay sample: The owner of the business operates a small business that is co-owned by two partners making it a partnership. The business had to comply with Australian laws.
  • European Protection Against Unfair Sales Practices Law essay sample: This paper undertakes an in-depth analysis and assessment of both EU directives to determine the exact ways in which they enhance protection against unfair sales practices.
  • Economic Crimes and Oil and Gas Transactions Law essay sample: Oil and gas transactions are one of the major financial transactions that malicious individuals can use to their advantage.
  • Breach of Contract Case Analysis Law essay sample: The issue concerned a breach of contract by one party led to the decrease in revenue incurred by the non-breaching party, Party A and Party B, respectively.
  • Principle of Commercial Law Law essay sample: The subject of business law is multidisciplinary since it covers the areas of intellectual property, tax law, bankruptcy, employment law, and real estate among other disciplines.
  • Contractual Aspects and Business Negligence Law essay sample: The paper discusses that an agreement becomes a contract when all the required legal elements are met. Hence, not all agreements qualify as contracts.
  • Conflict of Law: Rome Convention and the Rome I Regulation Law essay sample: This paper evaluates the impact that the Rome Convention replacement by the Rome I Regulation has had on the area of choice of law in the contract.
  • Contract Law: Consideration, Restitution, Fraud Law essay sample: This paper aims to discuss contract law in four parameters: Consideration, restitution and unjust enrichment, statute of fraud, and remedies for breach of contract.
  • The Role and Aspects of Contract Law Law essay sample: The paper seeks to discuss various elements of contract law which plays an imperative role in society by using a case scenario.
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  • Contract Law Problem Questions: Breach of Contract and Contract Termination
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  • Economic Reasoning and the Framing of Contract Law: Sale of an Asset of Uncertain Value
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  • Faulty Goods and Unfair Contract Exclusions Cases of English Contract Law
  • International Business Climate and Germany Partnership, Agency, and Contract Law
  • Mentally Challenged Individuals and Contract Law
  • Multilateral Reputation Mechanisms and Contract Law in Agriculture : Complement or Substitutes
  • Mutual and Unilateral Mistake in Contract Law
  • Personal Versus Impersonal Trade: The Size of Trading Groups and Contract Law
  • The Labor Contract Law, Macro Conditions, Self-Selection, and Labor Market Outcomes for Migrants in China
  • Understanding Contract Law and How to Form Contracts on the Internet
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  • Contemporary Contract Law and The Just Price Doctrine: Some Introductory Remarks
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  • What Are the Biggest Issues in Contract Law?
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  • What Are the Main Rules in Contract Law?
  • What Are the Principles of Contract Law?
  • What Are the Most Important Factors of a Contract Law?
  • What Is the Distinction Between a Contract of Service and a Contract for Service?
  • What Are the Negatives of Contract Law?
  • What Major Issues Generally Are Discussed in Contract Negotiations?
  • What Are the Important Points to Consider in Contract Law?
  • What Is the Main Purpose Rule in Contract Law?
  • What Are the Essentials of a Valid Contract?
  • What Is the Difference Between a Contract and an Agreement?
  • What Is an Illusory Promise in Contract Law?
  • What Is the Mirror Image Rule in Contract Law?
  • What Are the Two Primary Sources of Contract Law?
  • What Are the Classification of Contracts?
  • What Are the Two Types of Contract Law?
  • Is Contract Law State or Federal?
  • Is Contract Law Civil or Criminal?
  • What Jurisdiction Governs a Contract?
  • Who Enforces Contracts?
  • Who Cannot Enter Into a Contract?
  • What Makes a Contract Null and Void?
  • What Cannot Be Excluded in a Contract?
  • What Is Unenforceable Agreement?
  • What Two Laws Can Make a Contract Unenforceable?
  • What Are the Unenforceable Contracts?
  • Are Promises Legally Enforceable?
  • What Types of Contracts Are Under Common Law?

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Home — Essay Samples — Law, Crime & Punishment — Contract Law — The Contract Law: The Case of Jim, Laura, and the Automobile Purchase

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The Contract Law: The Case of Jim, Laura, and The Automobile Purchase

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Updated: 29 March, 2024

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The essentials of a legally binding contract, analysis of the automobile purchase agreement, the legal standing of the oral agreement.

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Essays on Contract

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2 Contracts, Promises and the Law of Obligations

  • Published: August 1990
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The conceptual apparatus which still dominates legal thinking is the apparatus of the nineteenth century. This influence extends not only to law itself, but also to the processes of thoughts and to language in political, moral, and philosophical debate. This chapter illustrates the conceptual framework of contract and its place in the law of obligations as a whole. It argues that that this conceptual apparatus is not based on any objective truths; rather, it is the result of the previous decade's heritage, created and moulded in the shadow of past movements and reflecting the values of yesterday. It further claims the need to recognize that many of the societal values today differ from the values of yesterday, and argues that revising concepts is necessary so that they conform more closely to the values of today and be more functional.

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  • Subject guides
  • Legal problem solving
  • Example 1 (Contract)

Legal problem solving: Example 1 (Contract)

  • Application
  • Example 2 (Negligence)
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  • << Previous: Conclusion
  • Next: Example 2 (Negligence) >>

Contract Law Essay Examples

Have no time? Stuck with ideas? We have collected a lot of interesting and useful Contract Law essay topics for you in one place to help you quickly and accurately complete your college assignment! Check out our essay examples on Contract Law and you will surely find something to your liking!

contract but do not appear to be a relevant issue here. While it is possible for offers to be “made to the world”1, K’s advertisement is an “invitation to treat”  It cannot be construed as an offer as it shows no intention on K’s part to be bound to its terms, in contrast to the […]

Contract A contract is a promise between two or more persons involving the exchange of some good or service. Some of the basic elements of a contract include: an offer and an acceptance; “capacity,” or being of legal age and sound competence; “mutual assent,” or agreement on the terms of a contract; and “consideration,” or […]

Contract Remedies What is a contract? – promise or set of promises, for breach of which the law gives a remedy or the performance of which the law recognizes as a duty. Types of contracts- a. express: formed by language, oral or written b. implied: formed by manifestations of assent other than oral or written language; […]

The Federal National Mortgage Association, commonly referred to as Fannie Mae or FNMA, is a government sponsored enterprise (GSE) that was created by Congress in 1968. Nevertheless, its origins can be traced back to the Great Depression in 1938.Contrary to popular belief, Fannie Mae’s main function is not to directly provide home loans to consumers. […]

Background Linda Dillon has sued Champion after she was encouraged to take a more challenging position within the company and was then fired for not meeting expectations. She claimed that she was told that it would take several months to get up to speed and that Champion would give her extensive training. Instead, she was […]

In contractual law, a mutual mistake is: “Where a mistake of both parties at the time of contract was made as to a basic assumption on which the contract was made has a material effect on the agreed exchange of performances, the contract is voidable by the adversely affected party unless he bears the risk […]

The nature of terms can be determined as a subject of any contract, which is to be set out. A term allows two parties having a binding obligation,. This allows them to perform a contract. The distinction between terms and representations can be stated as two different issues. This is because a term is an […]

“I have no radical proposals for the wholesale review of the doctrine of consideration. I am not persuaded that it is necessary. And great legal challenges should only be embarked upon when they are truly necessary. … On balance it seems to me that in modern practice the restrictive influence of consideration has markedly receded […]

First of all, it is essential to specify whether the message conveyed is an invitation to treat or an offer. According to Marson (2011) an offer ought to be a clarification of the terms that the other party must follow. In this case, Jock offers to sell 100 turkeys in exchange for £800 in cash […]

In the common law to speak of the outcome of consenting minds or, even more mystically of consensus ad idem is to mislead by adopting an alien approach to the problem of agreement. The function of an English judge is not to seek to satisfy some elusive mental element but to ensure, as far as […]

In the proposed scenario there are many factors which potentially affect whether an actual contract would exist. These include the distinction between an invitation to treat and an offer, the application of the postal rule and the circumstances when revocation may or may not be appropriate. There are also relevant case precedents that can be […]

Introduction The stringency of the doctrine of utmost good faith in English insurance law, though well known has nevertheless attracted a great deal of criticism. It makes it mandatory for the insured, prior to the formation of the contract, to disclose to the insurer without any omission such facts as are either known or should […]

Q1- Shambu Dayal implemented a self-service system in his store. Smt.Prakash entered the store, took a basket, and added items to the basket. When she went to the teller to make payment, the teller refused to accept her money. Can Shambu Dayal be forced to sell the items to Smt.Prakash? Please decide. Answer: Invitation to […]

1. Able entered into an oral contract with Baker for the sale of Able’s car for $5,000. Later Baker breached that contract. Able wants to sue to enforce the contract. Under the Statute of Frauds, who is the “party to be charged” in this case? a. Able. b. Baker. c. Both Able and Baker. d. […]

Consideration is essential to the formation of any contract made without deed. It distinguishes a bargain or contract from a gift. Lush J in the case of Currie v Misa (1875) referred consideration consist of a benefit to the promisor or a detriment to the promisee as: “Some right, interest, profit or benefit accruing to […]

Initially, Dickison orders 1000 widgets from International Widget at a cost of $5 per widget and requests a delivery timeframe of sixty days. However, after signing the contract, Dickison verbally asks International to expedite the delivery to thirty days. International agrees to this change. The question is whether this modification holds legal weight. Both parties […]

Introduction Contract is a customary of procedures guiding the relationship, content and validity of an agreement between two or more people (such individuals, businesses or other association) concerning the sale of goods, provision of services or interchange of interests or ownership. The elements of contract which are the offer and acceptance needed to be fulfilled. […]

An offer is a critical component of a contract, a legal agreement established between two or more entities. Other crucial factors include Acceptance, Consideration, Position, and Capability. If any of these components are missing, the contract will be deemed invalid. A proposal, otherwise known as an offer, is a precise promise or proposition that commits […]

When surveying Europe’s legal landscape, English law’s refusal to incorporate a general duty of good faith identifies it as somewhat of an oasis, standing in stark contrast to those around it. Yet in examining the net result of those ‘piecemeal solutions’ used in its place, is it truly so adrift? If, after all, these present […]

Contract Law 1 Intention to Create Legal Relations In order for a contract to be valid there must be intention to create legal relations. Enright notes ‘the requirement of intention to create legal relations is a final doorkeeper in contract. It determines which agreements supported by consideration shall be covered by contract law and which […]

According to Keller v. Inland Metals All Weather Conditioning, Inc, the case raises the question of whether there was an express warranty based on the conversations between both parties. If an express warranty was made, then the determination hinges on whether or not the company violated the warranty. The circumstances indicate that the Keller’s required […]

Part A The main issues are whether or not the court would consider that the restrictive covenant in issue is void for contrary to public policy. The relevant legal principles are: A covenant must be no wider than is necessary to protect the legitimate interest of the employer. Attempting to stifle competition is impermissible and […]

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contract law in business essay

DHS Must Again Face Indian Citizen’s Undercover Operation Suit

By Daniel Seiden

Daniel Seiden

An Indian citizen can have a second chance to allege that the US Department of Homeland Security breached a contract by not paying him back for educational services sought from a fictitious university created in an undercover fraud operation, the Federal Circuit ruled Tuesday.

Ravi Teja Tiyagurra says he paid thousands of dollars to the University of Farmington in Michigan without knowing that the school was part of DHS’s “Operation Paper Chase,” aimed at identifying student visa holders who fraudulently maintained student visa status and recruiters that helped them.

The US Court of Federal Claims ruled in 2022 that it ...

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FTC Takes Action Against Adobe and Executives for Hiding Fees, Preventing Consumers from Easily Cancelling Software Subscriptions

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The Federal Trade Commission is taking action against software maker Adobe and two of its executives, Maninder Sawhney and David Wadhwani, for deceiving consumers by hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions.

A federal court complaint filed by the Department of Justice upon notification and referral from the FTC charges that Adobe pushed consumers toward the “annual paid monthly” subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars. Wadhwani is the president of Adobe’s digital media business, and Sawhney is an Adobe vice president.

“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices.”

After 2012, Adobe shifted principally to a subscription model, requiring consumers to pay for access to the company’s popular software on a recurring basis. Subscriptions account for most of the company’s revenue.

According to the complaint, when consumers purchase a subscription through the company’s website, Adobe pushes consumers to its “annual paid monthly” subscription plan, pre-selecting it as a default. Adobe prominently shows the plan’s “monthly” cost during enrollment, but it buries the early termination fee (ETF) and its amount, which is 50 percent of the remaining monthly payments when a consumer cancels in their first year. Adobe’s ETF disclosures are buried on the company’s website in small print or require consumers to hover over small icons to find the disclosures.

Consumers complain to the FTC and the Better Business Bureau about the ETF, according to the complaint. These consumers report they were not aware of the existence of the ETF or that the “annual paid monthly” plan required their subscription to continue for a year. The complaint notes that Adobe has been aware of consumers’ confusion about the ETF.

Despite being aware of consumers’ problems with the ETF, the company continues its practice of steering consumers to the annual paid monthly plan while obscuring the ETF, according to the complaint.

In addition to failing to disclose the ETF to consumers when they subscribe, the complaint also alleges that Adobe uses the ETF to ambush consumers to deter them from cancelling their subscriptions. The complaint also alleges that Adobe’s cancellation processes are designed to make cancellation difficult for consumers. When consumers have attempted to cancel their subscription on the company’s website, they have been forced to navigate numerous pages in order to cancel.

When consumers reach out to Adobe’s customer service to cancel, they encounter resistance and delay from Adobe representatives. Consumers also experience other obstacles, such as dropped calls and chats, and multiple transfers. Some consumers who thought they had successfully cancelled their subscription reported that the company continued to charge them until discovering the charges on their credit card statements.

The complaint charges that Adobe’s practices violate the Restore Online Shoppers’ Confidence Act.

The Commission vote to refer the civil penalty complaint to the DOJ for filing was 3-0. The Department of Justice filed the complaint in the U.S. District Court   for the Northern District of California.

NOTE: The Commission refers a complaint for civil penalties to the DOJ for filing when it has “reason to believe” that the named defendants are violating or are about to violate the law and that a proceeding is in the public interest. The case will be decided by the court.

The staff attorneys on this matter are Sana Chaudhry and Daniel Wilkes of the FTC’s Bureau of Consumer Protection.

The Federal Trade Commission works to promote competition and protect and educate consumers .  The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov , or report fraud, scams, and bad business practices at  ReportFraud.ftc.gov . Follow the FTC on social media , read consumer alerts and the business blog , and sign up to get the latest FTC news and alerts .

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Guest Essay

I Know What America’s Leading C.E.O.s Really Think of Donald Trump

contract law in business essay

By Jeffrey A. Sonnenfeld

Dr. Sonnenfeld is the president of the Yale Chief Executive Leadership Institute.

Recent headlines suggest that our nation’s business leaders are embracing the presidential candidate Donald Trump. His campaign would have you believe that our nation’s top chief executives are returning to support Mr. Trump for president, touting declarations of support from some prominent financiers like Steve Schwarzman and David Sacks.

That is far from the truth. They didn’t flock to him before , and they certainly aren’t flocking to him now. Mr. Trump continues to suffer from the lowest level of corporate support in the history of the Republican Party.

I know this because I work with roughly 1,000 chief executives a year, running a school for them, which I started 35 years ago, and I speak with business leaders almost every day. Our surveys show that 60 to 70 percent of them are registered Republicans .

The reality is that the top corporate leaders working today, like many Americans, aren’t entirely comfortable with either Mr. Trump or President Biden. But they largely like — or at least can tolerate — one of them. They truly fear the other.

If you want the most telling data point on corporate America’s lack of enthusiasm for Mr. Trump, look where they are investing their money. Not a single Fortune 100 chief executive has donated to the candidate so far this year, which indicates a major break from overwhelming business and executive support for Republican presidential candidates dating back over a century, to the days of Taft and stretching through Coolidge and the Bushes, all of whom had dozens of major company heads donating to their campaigns.

Mr. Trump secured the White House partly by tapping into the anticorporate, populist messaging of Bernie Sanders, who was then a candidate, a move that Mr. Trump discussed with me when I met him in 2015. The strategy might have won voters but did little to enhance Mr. Trump’s image with the business community. And while a number of chief executives tried to work with Mr. Trump as they would with any incumbent president and many celebrated his move to cut the corporate tax rate, wariness persisted.

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  7. Contract Law

    Contract law is a body of law that governs, enforces, and interprets agreements related to an exchange of goods, services, properties, or money. According to contract law, an agreement made between two or more people or business entities, in which there is a promise to do something in return for a gain or advantage, is legally binding.

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  25. FTC Takes Action Against Adobe and Executives for Hiding Fees

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