Four Essential Elements Of A Legal Contract

Define the elements of a legal contract using examples from the scenario where applicable
An agreement must contain four essential elements to be regarded as a contract. If anyone of them is missing, the agreement will not be legally binding. The requisite elements that must be established to demonstrate the formation of a legally binding contract are (1) offer; (2) acceptance; (3) consideration; (4) mutuality of obligation. The purpose of a contact is to establish theagreement that the parties have made and to fix their rights and duties inaccordance with that agreement. An offer is defined as the manifestation of the willingness to enter into a bargain so made as to justify another person in understanding that his assent to the bargain

A contract requires that the parties intend to enter into a legally binding agreement. That is, the parties entering into the contract must intend to create legal relations and must understand that the agreement can be enforced by law. The intention to create legal relations is presumed, so the contract doesn 't have to expressly state that you understand and intend legal consequences to follow. Stan insists that the $100.00 was a deposit on the car and was meant to be part of the contract to buy the car. Stan is very persistent and insistent that Jim and Laura have contracted to buy the car; therefore, the $100.00 will be applied to the purchase price of the car.
Consideration is an essential element of any valid contract. Consideration consists of either a benefit to the promisor or a detriment to the promise. It is a present exchange bargained for in return for a promise. It is not necessary for a contract to be supported by a monetary consideration. Consideration is what each party gives to the other as the agreed price for the other 's promises. Usually the consideration is the payment of money but it need not be; it can be anything of value including the promise not to do something, or to refrain from exercising some