Contracts For A Contract Agreement Essay

1512 WordsDec 5, 20167 Pages
A contract is a promise or a set of promises that one party makes to another and that can be enforced using law. Contracts are made for commercial bargains. A contract is legally binding. It entails selling or hire of commodities such as services, goods or land. The major elements required for a legally binding contract are offer and its acceptance . When one person expresses an offer on outlined terms to contract and the offeree indicates that they have agreed to the set terms, the contract becomes legally binding. There is usually no room for negotiations after a contract has been made. Therefore, an offer that is valid must be in existence. There are requirements for existence of such a valid offer. This essay assesses the requirements. For an offer to be valid, contracting parties in a commercial transaction must be having an intention of entering into an agreement that is legally binding. Therefore, both the offeror and the offeree must be ready to create a relationship that is legal in manner . This ensures that either parties can sue the other in case they do not adhere to provisions of the terms in the contract. If the parties are in a commercial relationship that is not legally binding, then that is not a contract. It may be subject to contract which means that the terms of the relationship will become legally binding once the parties sign the subsequent contract. When the interaction is subject to contract, either of the parties is free to exit the negotiations at
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