University of Phoenix
January 28, 2013
Contracts regardless if they are written or verbal have the same basic components. The four components are (1) Mutual assent, (2) Agreement, (3) Exchange, and (4) Non-violation of public law. If the key components of a contract are met they will be enforceable in a court of law. In modern society it is more commonplace for contracts to be written so all parties involved have legal documentation to support their case.
Mutual assent is one party making an offer to another party for a product or service. This definition is sometimes known as “meeting of the minds.” The solicitation made by one party and potentially accepted by the other party is the foundation of any contract so it can be legally binding. Mutual consent is between both parties to make contracts legal.
The second key element of a contract is the agreement portion of a contract. This section is often referenced as the “offer and acceptance portion” of a contract. For contracts it is just the solicitation from one party and the acceptance by the other party for a product or service. Once the agreement is satisfied it is paired with the mutual assent to develop a binding contract.
The third element of contract is the exchange between the parties involved in the contract. Exchange is an integral part of any contract type. All parties involved must offer something for the contract, such as a product or service and the means to pay for it.
The final basic element of any contract is the non-violation of public law. If all components of a contract are in place violation of any local, state, or federal laws will make the contract non-compliant and therefore not legally enforceable. An example is recently the legalization of marijuana for recreational use was passed in the state of Colorado. Any person who signs up for the military in that state...