A Contract Is A Binding Agreement Between People Or Businesses

997 WordsOct 25, 20154 Pages
The definition of a contract is a legally binding agreement between people or businesses. There are certain elements to forming a contract. The first element begins with the offer to contract between the individuals or businesses. The second element is the acceptance the two parties respond to the offer to contract between the individuals or businesses which is expressed through words, deeds or performance. The third element is the consideration which means the value that induces the parties to enter into the contract. Both sides must receive the same mutual benefits when contracting. The fourth element is the legality the contract must be for a lawful purpose. The fifth is the capacity which means the parties must be adults of sound mind. The sixth is consent there are certain kinds of trickery or by force which can prevent the formation of a contract. The last is writing although some contracts can be verbal agreements some contracts must be in writing. Anyone who enters into a contract possesses complete legal capacity to be held liable for the duties he or she agrees to undertake, unless the person is a minor, mentally incapacitated, or intoxicated. A minor is defined as a person under the age of 18 or 21 depending on the jurisdictions. A contract made by a minor is voidable at the minor’s discretion, meaning that the contract is valid and enforceable until the minor takes some affirmative act to disavow the contract. Minors who choose to disavow their
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