2007-03-10 15:03:08 · 2 answers · asked by roadmark 1 in Business & Finance ➔ Careers & Employment
A contract is a legally binding agreement between two legal entities. It just means that a person can't backtrack on a deal that has already been made. There are three key elements of a contract. These are offer and acceptance, consideration, and an intention to create legal relations.
An offer is a definite offer of something for something. Acceptance means that you agree to the offer.
Consideration means that you must offer something for something. The agreement must be "sufficient" but it doesn't have to be "adequate." You couldn't buy a house for a penny. But you could buy it significantly undervalue.
"Legal Relations" basically means you have a written contract.
2007-03-10 15:06:46 · answer #1 · answered by chaseunchase 4 · 0⤊ 0⤋
A contract is necessary with respect to any bargain which cannot be immediately performed by both parties. If you go to the grocery to buy a loaf of bread, there is no need of a contract: the terms of the bargain are performed immediately, as the grocer gives you the bread, and you give him the money. But if are buying something and paying for it over time, a contract is necessary, to define what you are to pay, and also to define what nastiness is to ensue if you don't. There are some contract terms which are prescribed by law: an item of goods must be suitable for its reasonably intended purpose, for example.
2007-03-10 15:12:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋