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What constitutes a contract?
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17th Nov 2009 by Tobias John Sterling
The necessary elements that constitute a contract are as follows: 1) The offer and acceptance of an arrangement; 2) An exchange of consideration, and 3) Two or more parties intending to be legally bound. 'Consideration' is what the parties bring to the bargain. For example, if A buys a car from B for $500, then the consideration on one side is the car, and on the other is $500. Note that consideration doesn't have to be adequate -- it's perfectly legal and enforceable to pay 1c for a car if that was what was agreed. Contrary to popular belief, contracts do not need to be signed or even be in writing, though of course it's difficult to prove the existence or the exact terms of a purely oral contract.
The necessary elements that constitute a contract are as follows: 1) The offer and acceptance of an arrangement; 2) An exchange of consideration, and 3) Two or more parties intending to be legally bound. 'Consideration' is what the parties bring to the bargain. For example, if A buys a car from B for $500, then the consideration on one side is the car, and on the other is $500. Note that consideration doesn't have to be adequate -- it's perfectly legal and enforceable to pay 1c for a car if that was what was agreed. Contrary to popular belief, contracts do not need to be signed or even be in writing, though of course it's difficult to prove the existence or the exact terms of a purely oral contract.
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26th Oct 2009 In Legal
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Subjects: contract,
legal contract,