6 elements to a contract
A contract is a binding agreement made between two competent parties that can be written verbal or implied. The purpose of a contract is to create an agreement that can be supported by the law (West's Encyclopedia). As we enter the new millenium, and with the increase in the number of businesses (including e-commerce), we need to know more and more about contract law. Knowledge of contract law can also protect consumers and businesses from misunderstandings. The six elements of a contract are: binding agreement, competent parties, form required by law, legal in purpose, consideration, and genuine assent. A binding agreement is a contract, verbal or written, between parties that is bound by law. When two competent parties make an agreement, it is considered binding. A binding agreement must have an offer and an acceptance. An example of a binding agreement would be if Kelly told Jamie that she would buy her car for $6,000 and they both agreed to it. This agreement is legal in purpose, supported by consideration, is in the form required by law and is made by two competent parties who gave genuine assent.
Genuine assent exists when consent is not clouded by fraud, duress, undo influence or mistake (Mietus 212). For example, if Billy pulled out a gun and got Ed to agree to sell his bike for $5, Ed is under duress and is not giving genuine assent to sell the bike. It is important to have an understanding of the six elements of contract law. You should know what you are doing before you get involved in a contract so you avoid misunderstandings. I have learned that you can legally get into a contract without it being in writing or even spoken. An example of this would be paying bus fare to ride Valley Transit to travel. Without speaking there is an agreement involved. My suggestion for getting into contracts is to get things in writing because it is so hard to prove verbal agreements in a court of law. An example of a contract that cannot legally be bound would be if John wanted to buy Ryan's car for $2000 and Ryan refused. Later that day, John took Ryan out to a bar and offered him several drinks. John offered to buy Ryan's car again and Ryan agreed because he was under the influence of alcohol. Due to Ryan's lack of competency, this contract is void. For a contract to be a legal contract, it has to also be something that is not breaking the law in any way. You cannot be bound to an agreement that is illegal. The contract has to be legal in purpose for in to be enforceable. An example would be if Billy told Bob he would pay him $50 to steal a necklace. Because it is illegal to steal, if Bob stole the necklace and didn't give it to Billy and kept the $50, Bob couldn't be bound to the contract. Even if Billy gave Bob $50 to steal the necklace and Bob didn't do it and kept the money, they still would not have a legal agreement.
Some common words found in the essay are:
Law Unless, Competent Parties, Consideration Consideration, Assent Genuine, Binding Agreement, Legal Purpose, West's Encyclopedia, Definition Paper, Valley Transit, John Ryan, genuine assent, competent parties, binding agreement, legal purpose, required law, form required, form required law, contract law, legally bound, formal contract, legal contract, giving genuine assent, contract binding agreement, binding agreement competent, agreement competent parties,
Approximate Word count = 1266
Approximate Pages = 5 (250 words per page double spaced)
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