Contract Elements 1
Elements and Requirements of a Valid Contract
La’Saundra Harris- Lancaster
BUS 311: Business Law
Instructor Donald Ceplenski
Contract Elements 2
Although people use make agreements almost every day, they should be legal, but do we know what the requirements are or what elements are needed for these agreements also known as “contracts”? Contracts are an agreement between parties that are made in order for all parties to relate and stay consistent on business projects, whether it be property, personal, employment or intellectual wise.
Before running a business there are several important factors that must be addressed, like: what agreements have to be placed in order to run this business sucessfully. This is where contracts come into existence. Contracts should consist of a clear and concise mutual agreement between parties, how long the offer stays open, when it will expires, counter offers, and what happens when an offer is accepted. There are also other key structure that make up a valid contract. The offer- a mutual agreement, the acceptance- the other parties agreement and acceptance of the contract, Both of these can either be verbal or written. When acceptance has occurred whether by immediate or delayed acceptance it will still be a valid agreement, Understanding that this offer has been accepted, it can not be revoked at this point. Once these elements are completed we move on to the consideration for the contract. Consideration is based on factors like what is to be exchanged and its value. Another way to look at it is the fee paid for a service performed. These services also known as promises must also be kept as a rule under a contract. After all of these terms are met we have a valid contract. Another form of consideration is Ethical Consideration, this is when the law assumes that individuals will look after their own...