Elements of a Contract
Elements of a Contract
Bus 670 Legal Environment
Abstract In order for a contract to be valid, it must meet certain standards. Contracts can be formed by two parties for multiple reasons, but must hold up to the same standards in court to be valid. The first element of the contract is the offer. The offer is very important because it is where the contract initializes, and is presented to the offeree by the offeror (Mallor et al., 2010, p. 307). The second element is acceptance. In this stage, the offeree has the chance to accept or deny the offer (Mallor et al., 2010, p. 325). The final element of a valid contract is legal consideration. Consideration basically means both parties must have agreed to something for the contract to be upheld (Mallor et al., 2010, p. 343).
Elements of a Contract Contracts are created every day for multiple different reasons. Examples of these contracts are contracts of marriage, contracts made with a wedding planner, and contracts made for a house lease. Regardless of the reason for creating the contract, the three elements that must be met for the contract to be valid are a communicated offer, an acceptance of the offer, and consideration offered by both parties (Mallor et al., 2010, p. 307-343).
Offer
An offer is the first step in forming a contract. An offer is communicated by an offerer, while the offeree is the person who has the power to accept or deny the offer (Mallor, Barnes, Bowers, & Langvardt, 2010, p. 307). There are three requirements that distinguish an offer. These three requirements are a present intent to contract on the part of the offeror, definiteness of the alleged offer, and whether the offer has been communicated to the offeree (Mallor et al., 2010, p. 307). The first requirement, present intent, basically means the offeror is not joking, and has intent to enter the contract (Mallor et al., 2010, p. 307). The second portion, definiteness of the alleged offer, drills down to
Bus 670 Legal Environment
Abstract In order for a contract to be valid, it must meet certain standards. Contracts can be formed by two parties for multiple reasons, but must hold up to the same standards in court to be valid. The first element of the contract is the offer. The offer is very important because it is where the contract initializes, and is presented to the offeree by the offeror (Mallor et al., 2010, p. 307). The second element is acceptance. In this stage, the offeree has the chance to accept or deny the offer (Mallor et al., 2010, p. 325). The final element of a valid contract is legal consideration. Consideration basically means both parties must have agreed to something for the contract to be upheld (Mallor et al., 2010, p. 343).
Elements of a Contract Contracts are created every day for multiple different reasons. Examples of these contracts are contracts of marriage, contracts made with a wedding planner, and contracts made for a house lease. Regardless of the reason for creating the contract, the three elements that must be met for the contract to be valid are a communicated offer, an acceptance of the offer, and consideration offered by both parties (Mallor et al., 2010, p. 307-343).
Offer
An offer is the first step in forming a contract. An offer is communicated by an offerer, while the offeree is the person who has the power to accept or deny the offer (Mallor, Barnes, Bowers, & Langvardt, 2010, p. 307). There are three requirements that distinguish an offer. These three requirements are a present intent to contract on the part of the offeror, definiteness of the alleged offer, and whether the offer has been communicated to the offeree (Mallor et al., 2010, p. 307). The first requirement, present intent, basically means the offeror is not joking, and has intent to enter the contract (Mallor et al., 2010, p. 307). The second portion, definiteness of the alleged offer, drills down to
References: Contract Basics: Part One. (2011, January 4). The Law for Creatives. Retrieved April 29, 2012, from http://thelawforcreatives.com/2011/01/04/contractbasics-part1/ Elements of a Contract. (n.d.). The Law Handbook. Retrieved April 29, 2012, from http://www.lawhandbook.org.au/handbook/ch12s01s02.php Mallor, J. P., Barnes, A. J., Bowers, T., & Langvardt, A. W. (2010). Business Law - The Ethical, Global, and E-Commerce Environment. (14th ed.). (pp. 307-343). Boston, MA: McGraw-Hill Irwin. Promissory Estoppel and Detrimental Reliance. (n.d.). Lawnix. Retrieved April 28, 2012, from http://www.lawnix.com/cases/promissory-estoppel.html What is Legal Consideration?. (n.d.). Wise Geek. Retrieved April 28, 2012, from http://www.wisegeek.com/what-is-legal-consideration.htm