Basic Requirements for a contract to exist Flashcards
1
Q
What is the first requirement for a contract?
A
An agreement between parties who intended to be legally bound (includes an offer and an acceptance).
2
Q
What is an “offer” in contract law?
A
A clear proposal made by one party to another, indicating a willingness to enter into a contract on specific terms.
3
Q
What is “acceptance” in contract law?
A
An unequivocal agreement to the terms of the offer, communicated to the offeror.
4
Q
What is the second requirement for a contract?
A
Consideration (something of legal value exchanged between the parties).
5
Q
What is “consideration”?
A
The value that is exchanged in a contract, which can be money, services, or a promise to do (or not do) something.
