Offer and Acceptance

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Offer and Acceptance (Acquisitions Law) Overview Acquisitions law is the nourishment that keeps commerce flowing for the benefit of all mankind and a common understanding of what makes an offer and acceptance into a contract is the secret sauce. A contract is an agreement among two or more parties that creates mutual obligations that are enforceable in a court of law. A valid contract has four basic elements: legality, mutual consent, capacity, and consideration. Contracts are promises that are enforceable under the laws of the land. Legal remedies are available for breach of promise or the court may enforce the duty to perform a promise. Contracts are formed when a duty comes into existence because of promises made. A legally binding contract contains adequate consideration to be exchanged for a promise. Consideration is a reward or a penalty which induces a party to agree to the promises/in the contract. The heart of the contract is the requirement for mutual consent in the form of the offer and the acceptance. (LII, 2012) Legality A contract cannot violate public policy and be enforceable. A person cannot enforce a contract if the subject matter is illegal, For example, a contract for the sale of illegal drugs cannot be enforced. Illegal contracts do not need to be voided by the aggrieved party; the court will declare that they were not valid from the inception and, therefore, have no legal effect. Similarly, one party using fraudulent behavior to induce the
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