Essay on Elements of a Contract

939 Words Apr 6th, 2011 4 Pages
Elements of a Contract
Angelique Gares
BUS670 Legal Environment
Professor Roger Amos
May 24, 2010

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This paper is a study of the Element of a Contract detailing the essential elements that constitute a legal binding agreement. A contract can be defined as an agreement between two or more persons for example, individuals, organizations or government agencies and or business, to do, or to refrain from doing something in exchange for something of value. The text states “to qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and an acceptance of that offer. In addition, there usually must be consideration to support each party’s promise. The contract must be between parties who
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If a reply to an offer introduces a new term or changes such as pricing or terms of agreement, that reply cannot amount to an acceptance. Rather, the reply would be treated as a "counteroffer" which Verizon is free to accept or reject. A counteroffer is viewed as a rejection of the original offer, which cannot subsequently be accepted. According to Deborah Shefrin in, Contracts: Deal or no Deal “The process of offer and acceptance results in a mutuality of obligations or bargained-for exchanges, which is at the heart of a valid contract” (2006). It is also important that acceptance should be communicated by the agreeing party within an acceptable time frame set by offeror. However if no such time limit was stated, acceptance must be made within a reasonable time from the date the offer was made. Depending on the nature of the offer, acceptance may be made through various communication mediums, such as telephone, email, fax or even video conference.
The text states “a common definition of consideration is legal value, bargained for and given in exchange for an act or a promise. Thus, a promise generally cannot be enforced against the person who made it (the promisor) unless the person to whom the promise was made (the promisee) has given up something of legal value in exchange for the promise. In effect, the requirement of consideration means that a promisee must pay the price that the promisor
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