Ch. 7 FOR REVIEW

Ch. 7 FOR REVIEW - What is a contract What are the four...

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What is a contract? What are the four basic elements of a valid, enforceable contract? A contract is a legally enforceable agreement between two or more persons involving the exchange of some good or service. The core of most contracts is a set of mutual promises. The promises made by the parties define the rights and obligations of the parties. Contracts are enforceable in the courts. If one person or party to the contract does not carry out his or her part of the promise, the other person or party is entitled to receive relief through the courts.   The breaching party may be subject to sanctions, including damages or, under some circumstances, being required to perform the promise. The four primary requirements that constitute what are know as the elements of a contract are: Agreement: includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer. Consideration : is something of value, received or promised, to convince a person to contract. Promises must be supported by legally sufficient and bargained-for consideration. Capacity:
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Ch. 7 FOR REVIEW - What is a contract What are the four...

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