Essay about 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 …show more content…
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).
Legal consideration is the final portion of a contract. “A common definition of consideration is legal value, bargained for and given in