Features of a Simple Contract - ASAP Flashcards
What is an agreement?
When the seller agrees to supply you with a good at a certain price and you agree to pay that price.
What is a contract?
A contract is a legally enforceable agreement
between two or more persons or parties. The
contract outlines the details of the agreement
and the rights and responsibilities (obligations)
of each of the parties.
Elements of a contract:
Three essential elements make a contract legally
binding:
- the offer
- the acceptance
- the consideration.
What is an offer?
An offer is a proposal. It involves one of the parties
offering something of value (for example, money) to
the other party in the agreement.
What is acceptance?
An acceptance occurs when the offeree agrees
to the proposal.
What is Consideration?
When each party to the agreement to give up something of value.
