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ELEMENTS OF A CONTRACT by Alice Ken






ELEMENTS OF A CONTRACT by
Article Posted: 10/18/2017
Article Views: 315
Articles Written: 99
Word Count: 260
Article Votes: 0
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ELEMENTS OF A CONTRACT


 
Education,Law,Writing
For a contract to be legally binding, offer, intention, price, and acceptance must be in place. A contract is made when an offer of one party is accepted by the other party. Not all people are allowed to a valid contract. There are a group of people that are supposed to be dealt separately, they include young people, people with mental impairment, bankrupts, prisoners, and corporations. A contract has four elements namely the offer, consideration, acceptance, and mutuality. Offer is defined as the promise to abound. There must be acceptance of what has been offered. A person can withdraw an offer before it has been accepted. However, before withdrawing the proposed offer, the person must communicate to the other party on matters about the withdrawal. Acceptance as an element of the contract occurs when the party answering the offer agrees to make an offer by way of a statement. Acceptance must be communicated to the offer. Consideration in simple terms is described as the price paid for the promise made in a contract and must have value. There are documents which do not require consideration in order for a contract to be binding for example all documents which are under seal. In mutuality as an element of a contract, there is a proof that both parties read and understood the basic substance and the terms of the contract. According to this element, both parties must be bound to do their obligations. To avoid the invalidating of the contract, the parties must limit their discretion to the contract.

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