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 …show more content…
If this is the case, and no specifics were given about how much the item costs, then it is only leading up to an offer, that may be formed, but is not yet an offer (Mallor et al., 2010, p. 309). The last requirement of an offer revolves around whether or not the offer has been communicated to the offeree (Mallor et al., 2010, p. 313). If the offeror has not yet communicated an offer, then it is likely he has not yet decided to enter into a binding agreement (Mallor et al., 2010, p. 313). To put the offer portion in every day terms, a wedding planner example is to be used. A wedding planner, who is party number one, offers her wedding services to an engaged couple, party number two (Contract Basis: Part One, 2011). The offer is what is considered to be the wedding planners’ expression of willingness to enter into a contract on the terms that have been stated (Contract Basis: Part One, 2011). This is with the intention the contract terms will become binding. At this point, the offer is put into a written contract that is prepared by party number one. This contract displays all the contract terms agreed upon by both parties (Contract Basis: Part One, 2011). Acceptance Acceptance of an offer occurs when the party who is answering the offer, agrees by either a statement or an act (Elements of a Contract, n.d.). Three evident factors go into determining if an offeree accepted an offer, which resulted in a contract
An acceptance of an offer is “ a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer.
Acceptance-This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed.
Acceptance. This basically means that the terms of the offer have been clearly understood and agreed to through consent
However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,
An offer allows the person or business to whom the offer is made to, to reasonably expect that the offering party is willing to be bound by the offer based on the terms proposed thus these terms of an offer must be define as well as certain.
P2 EXPLAIN THE LAW IN RELATION TO THE FORMATION OF A CONTRACT IN A GIVEN SITUATION
A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can
Offer – to form a contract there must be an offer by one party. It is a definite and clear statement of willingness to be bound on stated terms without further consultations. Offer can be in written or oral form but it is not effective if it is not being communicated to the offeree.
The offeree is the only party with legal power to accept an offer, thus forming a contract. In addition, for the contract to be considered accepted, the offeree must accept all the terms of the offer unequivocally. This is called “the mirror image rule”. For example, if the offeree stated “I will purchase your home, but I wish the drive way was repaved”. The offeree accepted the terms, making this an accepted contract. An example of non-acceptance is if the offeree stated “I will purchase your home, if you pave the driveway”, This would be a
Under Common Law, for a contract to exist, three elements must be present: an offer, an acceptance and a consideration. The notions of offer and acceptance under Common Law are not fundamentally different from those in French contract law, although their effects may differ. The offer indicates the willingness of a party to enter into a bargain, and the acceptance reflects the agreement of the other party to the offer.
The four elements of a valid contract are offer and acceptance, meeting of the minds, consideration and competent parties. The contract must cover a legal purpose or objective as well (Binder, 2012). The objective theory of contracts holds that contract formation is dependent on what is communicated, rather than what is thought by one of the parties (Barnes, 2008).
for it to qualify as a proper contract in the eyes of the law: offer
other in order to form a contract, the value of the consideration need not be
Acceptance is a final and unqualified expression of consent to the terms of an offer. An offer may only be accepted by the person to whom it is made unless an agent is authorized to accept on behalf of that person. In addition, an acceptance must be made in the manner requested or authorized by the offering party. If the party to whom the offer is made
The first element of a valid contract would have to be the offer. You can’t have an contract with a having something to offer to another partner. An offer is when one party