Bus 670 Week 3 Elements Of A Contract Paper

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Elements of a Contract BUS 670: Legal Environment of Business Elements of a Contract According to (Business Dictionary, 2012), a contract is defined as “A voluntary, deliberate, and legally binding agreement between two or more competent parties” (para. 1). A contract is apart of everyday life. It helps to validate trust and can be used for employment, products and services, residency, and purchases. It allows two or more parties to make promises to each other and not have to worry whether or not the promise will be honored (Mallor, et al, 2010, p. 290). The validity of a contract rests on the content of its pages. Mallor, Barnes, Bowers, and Langvardt (2010) state that, “A set of promises must be based on a voluntary agreement made up of an offer and an acceptance, and a legal consideration to support each party’s promise” (p. 292). An offer, an acceptance, and a consideration of a promise made by the parties are the basic elements of a contract. These contract conditions are subject to interpretation from the court. The purpose of this paper is to provide a written descriptive presentation of the concept of these three basic elements relate to a contract. Offer The first element of a contract is an offer.…show more content…
It is defined as a “manifestation of assent to the terms of an offer made by the offeree in the manner invited or required by the offer” (Mallor, et al, 2010, p.325). If an acceptance is not made, a contract can not be created. Acceptance can be in many forms; acceptance by conduct, oral acceptance, and acceptance in writing which are all valid types of acceptance. However, “written acceptance is preferred because it provides proof of an offer and acceptance which no party can deny” (Jalil, 2011, p.2). A written acceptance has more standing in court because it is documentation that an offer was made and accepted based on specific promises made by each
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