Key Elements Of A Contract

Decent Essays
Contacts are something we come across in our day-to-day lives, most of the time without even noticing it. Whether we are at a restaurant, buying a house or car, or even having a day at the spa. A contract is a written or expressed agreement between at least two parties to provide a service or product and can be legally enforced if drawn up correctly. It is most common for a contract to be written and signed by both parties, but there are other forms of contracts including expressed contract and implied in-fact contracts. In an express contract, all elements are clearly stated either written or orally. Both parties must fully understand the terms and conditions that they are agreeing to. The not so transparent of contracts would be an…show more content…
This exchange of money would bind both parties to the agreement. Consideration is the next element of a contract. It is something of value that is exchanged between the parties involved in the contract in the form of money or promise to do something or perform. In order to qualify as consideration, it must be bargained-for and legally sufficient. In this case, Stan (promisor) offers Jim and Laura (promisee) to hold the vehicle with a deposit of $100, Jim and Laura accepts, the $100 is the consideration (value) for the hold of the vehicle (performance). The consideration meets both qualifications because there is not a legal obligation already in place for the offer and it was bargained-for by the exchange of promise and something of value. A contract must be for a legal purpose and not for any purpose that may break any laws. A court will not back up and support a contract that has any intention of breaking the law. Based on the information from the scenario, neither Jim, Laura nor Stan Salesman appear to have any illegal intent when entering the potential contract. Jim and Laura were legitimately looking to replace their current vehicle that had been giving them mechanical problems and to use it to travel from work and school. Being of legal age and of sound mind is the capacity of the contract. Capacity means a person’s legal ability to enter into a contract. When looking at who can enter a contract a few
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