Main Elements of a Contract

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Main elements of a contract A contract is a written or verbal agreement made between two or more parties in which the exchange of goods and/or services is agreed upon through unilateral or bilateral exchange. A successful contract contains at least six key elements, which detail how this exchange or exchanges will take place. A contract can also include details of how breach will be handled or details about how the contract can be legally terminated. Furthermore, a contract can have several defenses that will make it unenforceable by law. The six major elements of a contract are offer, acceptance, objections, mutuality of obligation, and competency. In contracts, an offer specifies what goods and/or services are going to be exchanged. An order can be defined as "an expression of willingness to contract on certain terms, made with the intention that [terms] shall become binding as soon as it is accepted by the person to whom it is addressed" (Treitel, 2007). As stated in the definition of offer, the next step in creating a successful contract is acceptance. Acceptance can also be referred to as genuine assent and requires that all parties partaking in a contract agree to the terms outlined in the offer. Legally, all terms outlined in a contract cannot be transferred to a third party, nor can services be subcontracted out to a third party unless there is a provision included in the contract that addresses how these circumstances should be handled. Furthermore, all terms
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