Running head: LAW, ETHICS & CORPORATE GOVERNANCE 1
Contract law has several requirements that should be considered when determining the legality
of the waiver contract. A waiver contract is a legally binding provision where either party in a
contract voluntarily forfeits a claim taking away liability from the other party (Bagley, 2019).
One party in a contract may voluntarily relinquish specific and known rights or privileges to
remove potential liability of the other party. The waiver contract between Mowers Inc. and its
employee is legal because the two employees knowingly and voluntarily agreed to sign the
waiver of liability contract (Davies, 2018). The two employees relinquished specific and known
right of protection by the company in case of liability. The two employees have worked under
similar terms for the last five years, which makes the waiver of liability contract valid.
The employees had mutual consent with their employer about the consequences of signing the
waiver of liability contract. There is no evidence to show that they lacked adequate consideration
and were not in capacity to understand the contract terms (Davies, 2018). The waiver contract is
also legal because the employees signed it which means they read and understood its provisions
and agreed to them. The employer promised the employees that the company will protect them
and that they should not worry while working for the company (Bagley, 2019). The verbal
assurances made by the employer to the employees in this case do not become part of the written
contract. According to Marianne (2022), once a contracted is transitioned to its final written form
and is unambiguous and complete, parties cannot contradict its terms with evidence of their
verbal agreements when the contracted is executed. The company trains its employees on using
the lawn equipment before making them sign the waiver of liability contract as an effort to
reduce its liability. The verbal assurances would have been considered as express contract, but
does not mention the extent to which the company will protect the employees in case of an
incident (Davies, 2018).
Contract law has several requirements that should be considered when determining the legality
of the waiver contract. A waiver contract is a legally binding provision where either party in a
contract voluntarily forfeits a claim taking away liability from the other party (Bagley, 2019).
One party in a contract may voluntarily relinquish specific and known rights or privileges to
remove potential liability of the other party. The waiver contract between Mowers Inc. and its
employee is legal because the two employees knowingly and voluntarily agreed to sign the
waiver of liability contract (Davies, 2018). The two employees relinquished specific and known
right of protection by the company in case of liability. The two employees have worked under
similar terms for the last five years, which makes the waiver of liability contract valid.
The employees had mutual consent with their employer about the consequences of signing the
waiver of liability contract. There is no evidence to show that they lacked adequate consideration
and were not in capacity to understand the contract terms (Davies, 2018). The waiver contract is
also legal because the employees signed it which means they read and understood its provisions
and agreed to them. The employer promised the employees that the company will protect them
and that they should not worry while working for the company (Bagley, 2019). The verbal
assurances made by the employer to the employees in this case do not become part of the written
contract. According to Marianne (2022), once a contracted is transitioned to its final written form
and is unambiguous and complete, parties cannot contradict its terms with evidence of their
verbal agreements when the contracted is executed. The company trains its employees on using
the lawn equipment before making them sign the waiver of liability contract as an effort to
reduce its liability. The verbal assurances would have been considered as express contract, but
does not mention the extent to which the company will protect the employees in case of an
incident (Davies, 2018).
