Elements of a Contract Essay

1429 Words Aug 22nd, 2013 6 Pages
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
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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 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
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