Elements of a Contract

Elements of a Contract Student Name School Name Course Name and Number Instructor`s Name Date Submitted Elements of a contract A contract is a legally enforceable agreement between two or more parties, where parties could be individuals or businesses, which is created when both parties in the agreement assume a legal duty. (Find Law, 2012). For the contract to be legally enforceable it needs to have at least three main elements namely an offer, acceptance and legal consideration. If any of this is missing then the contract is null and void. In this paper we look into each of these elements in detail. An offer is a statement or any other indication that one party is prepared to enter into a legal contract with another party if certain terms are met. (E-law, 2012) It is the willingness to enter into a bargain with another person with an aim of understanding the other party. The goal is to eventually agree and enter into a contract which can be enforced in a court of law. It must be stated in such a manner that the person receiving it can accept it without making any alteration to it. The person making an offer is called the offerer while the person to whom the offer is made is called the offeree. It is important to distinguish between an offer and an invitation to treat. An invitation to treat calls upon other people to make an offer or to consider offers and usually forms the foundation of negotiations. (Small Business Development Corporation). It differs significantly from an offer in the sense that it is not enforceable in law. Some good examples of invitation to treat are catalogues, newspaper advertisements and lists of prices. Once an offer is made, the person it is offered to will either accept the offer or do otherwise. (Pollock, 2009) Acceptance of an offer is an expression of the willingness to assent to the terms made in the offer without changing the said terms. (Legal Elements of a Contract, 2011) An offer can only be accepted in the manner in which it is offered. Should the party feel that the terms are unacceptable and suggests or adds new terms; therefore this is called a counter offer. A counter offer could be accepted or rejected depending on the negotiations that take place. Many offers and counter offers can be made, but the endpoint is what really matters. If the parties agree to the terms then they are ready to enter into an agreement. (Beatson, & Friedmann, 1997) An offer can be accepted in writing, verbally or assumed based on an action which depicts acceptance. Most offer...