Essay about Elements of a Contract

1427 Words Aug 13th, 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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325). The offer must specify what behavior is required to bind the offeree to the contract. If these terms are met, then there is intent to enter, and the contract forms (Mallor et al., 2010, p. 325). The second factor is, the offeree accepted on the terms that were proposed by the offeror (Mallor et al., 2010, p. 327). In other words, the acceptance must mirror the image of the given offer (Mallor et al., 2010, p. 327). The final factor in determining if an offeree accepted an offer is if the offeree communicated his acceptance of the offer (Mallor et al., 2010, p. 331). At this point, the offeree must communicate to the offeror his intent to be bound by the offer (Mallor et al., 2010, p. 331).
In reference back to the wedding planner scenario, the acceptance is the second portion of creating the contract by party number one and two. The acceptance become satisfied when party number two makes a final expression of agreement to the terms created by party number one’s offer (Contract Basis: Part One, 2011). In other words, party number two receives a contract given by party number one, number two reads the terms, and then decides they agree (Contract Basis: Part One, 2011). In result, party number two accepts the offer, and signs the contract (Contract Basis: Part One, 2011).
Consideration
Legal consideration is the final portion of a contract. “A common definition of consideration is legal value, bargained for and given in

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