Essential Elements of a Contract

RCCOLA

Contract: Agreement to exchange goods or services for

something of value. Essential elements of a contract include:
Mutual Assent
The Offer and Acceptance

Must be offer and acceptance

Counteroffer-parties switch
Offeror-party who makes the offer
Offeree-party who receives the offer

Competent Parties

Of legal age/ No minors

Sane
Not under the influence of drugs or alcohol
Undue Influence-of the mind
Duress-physically

Consideration
Something of measureable value exchanged (does not
have to be of equal value)
Could be nominal value (much less than what it is worth)

 Adequate to both parties

Legal
Legal in nature
No fraud or deception
Required Form

90% of all contracts are oral agreements

Over $500 must be in writing
Expressed- spoken
Implied- no words are spoken (EX vending machine, ATM machine)