The Contract Of A Contract Essay

841 Words Nov 13th, 2016 4 Pages
A contract is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes duty. Contracts at their simplest level are legally enforceable agreements. A valid contract is generally viewed as one that has the following elements: agreement, consideration, legal object, and parties with legal capacity. Another simpler way to think of a contract is that it is a set of legally enforceable promises.

An agreement consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree. Consideration is defined as the bargained-for exchange. Another way to think of consideration is that it is what each party gets in exchange for what his or her promise under the contract. The last element of a contract is the contractual capacity, the legal ability to enter into a binding agreement. Persons who do not have the capacity to enter into legally binding contracts include those who are under age of majority, intoxicated, or suffering from some type of mental illness.

Contracts are classified in a number of ways too. It can be classified as either bilateral or unilateral. Different classifications are useful for different purposes. Knowing whether a contract is a unilateral or bilateral is important because that classification determines when the offeree is legally bound to perform. A bilateral contract is commonly defined as a promise in exchange for a promise. As soon as…

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