Asked by kennith taylor on May 11, 2024
Verified
What are the four basic requirements for the formation of a valid contract?
Valid Contract
A valid contract is one that meets all the essential legal requirements, including offer, acceptance, consideration, and the intention to create legal relations, making it enforceable in court.
Basic Requirements
The essential criteria or conditions that must be met for a task, project, or job.
- Recognize and articulate the basic requirements for the formation of a valid contract.
Verified Answer
MM
mariama mohamedMay 15, 2024
Final Answer :
The four basic requirements to form a valid contract are:
• Agreement: An agreement includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.
• Consideration: Any promises made by parties must be supported by legally sufficient and bargained-for consideration (something of value that is received or promised to convince a person to make a deal).
• Contractual capacity: Both parties entering into the contract must have the contractual capacity to do so; the law must recognize them as possessing characteristics that qualify them as competent parties.
• Legality: The contract's purpose must be to accomplish some goal that is legal and not against public policy.
If any of these four elements is lacking, no contract will have been formed.
• Agreement: An agreement includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.
• Consideration: Any promises made by parties must be supported by legally sufficient and bargained-for consideration (something of value that is received or promised to convince a person to make a deal).
• Contractual capacity: Both parties entering into the contract must have the contractual capacity to do so; the law must recognize them as possessing characteristics that qualify them as competent parties.
• Legality: The contract's purpose must be to accomplish some goal that is legal and not against public policy.
If any of these four elements is lacking, no contract will have been formed.
Learning Objectives
- Recognize and articulate the basic requirements for the formation of a valid contract.