Essential Elements Of A Contract Essay

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This research is set out to explain the essential elements that make a contract valid, but first it is needed to be understood what a contract is. "A legally binding agreement made between two or more parties, that is enforceable in the court of law" is the well known definition of a contract. According to The Law Handbook (2015), a contract is deemed valid by the court when it contains a number of essentials.
Listed below are 6 key elements needed to make a contract valid. "A contract that lacks of one of these elements is not valid and therefore legally unenforceable" (Insuranceopedia.com, 2016).
1. Offer and acceptance are the first to arise when considering a contract. Offer means putting forth an arrangement of terms on the table for …show more content…

Minors, persons of unsound mind, and persons under drug or alcohol influence are considered not competent. They entering into a contract makes the contract not valid. Hamilton (n.d) stated, that under the doctrine of privity of contracts, "only those who are party to the contract have rights or liabilities under the contract, and so have the right to enforce the contract". Parties with considered competent and have legal capacity then must give their consent, which is agreeing to the terms of their own will and judgment of what is presented. Receiving consent means then under any circumstance, legal action can be presented in the courts, as the parties partook in actions that were genuine (Kumar, 2012; The Law Handbook, 2016). Parties outside of the contract known as 'third parties', are not applicable to the contract rights or obligations. This is waived however only under statutory exemptions (Hamilton, n.d). These elements denotes legality; that the essence of the contract are true, not under false or illegal pretences, legal to be presented before the courts under circumstances, and contractual actions are not against the law (Bays, 2016).

CONCLUSION
All types of contracts must illustrate these elements. Businesses are not exempted from this. These elements provide the contract itself and corresponding parties with the necessary requirements to partake in such an action without complications or drastic detriment. If any action is

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