elements of a contract
DESCRIPTION
Elements of a contract. Ag Business. What is a Contract. Definition: Agreement. Definition: Contract. A social agreement between 2 or more parties which sometimes may not be legal. A legally binding agreement that is enforceable by law. . 7 Elements of a contract. Offer Acceptance - PowerPoint PPT PresentationTRANSCRIPT
Ag BusinessELEMENTS OF A CONTRACT
A social agreement between 2 or more
parties which sometimes may not
be legal
A legally binding agreement that is
enforceable by law.
Definition: Agreement Definition: Contract
WHAT IS A CONTRACT
• Offer• Acceptance• Legal Purpose• Mutuality of Obligation• Certainty of Subject Matter• Consideration• Competent parties
7 ELEMENTS OF A CONTRACT
Definition: offerer makes a proposal to another party.
OFFER
Offerer- The person who is making the offer
ACCEPTANCE
Definition: When an offeree agrees to all the terms and
conditions of the offer.
Offeree: The person who is choosing to accept or decline the offer
Definition: The objective of the contract must consist of legal activities.
LEGAL PURPOSE
Defintion: Both parties understand and assent to the objectives of contract.
MUTUALITY OF OBLIGATION
Meeting of the Minds
Definition: The obligations of the contract must be clear so that a court
of law can understand both parties obligations.
CERTAINTY OF SUBJECT MATTER
Definition: There must be benefit or detriment to one or both parties.
CONSIDERATIONS
Definition: The law generally presumes that everyone has the capacity to contract.
COMPETENT PARTIES
HOWEVER* You are not considered competent if you are under 18
Who signs for minors?
1.)Make a contract with a business owner in class.2.) Incorporate all 7 elements into your contract.3.) HINT*-go through each slide of notes and make sure you have each element incorporated into your contract.4.) Both parties must sign and date their contract.
MAKE OR ACCEPT AN OFFER