Law - Contract

Definition

A contract is aimed to formalize an agreement between two or more parties, with regard to a specific subject. It is a legally binding deal, if it consists of the elements of a strong legal agreement, is enforceable by law.

Elements

• An offer: a promise in exchange of performance by another party, made by the offeror with the objective that, if the offer is established, they will be bound by a contract.
• Acceptance: an expression of definite and unconditional agreement set out in the offer. It can be oral or in written format. The acceptance must precisely mirror the original offer made.
• A counter-offer is not similar to an acceptance. After a counter-offer is made, then the original offer can’t be accepted.
• A request for information is not a counter-offer. If any information or clarification is asked about the offer which doesn’t extinguish the offer; you can still accept it if you want.
• Consideration: each party to the contract must receive something significant.