Q: Define Contract.

A: “An agreement between two or more than two parties that is enforceable by court of law”
A Contract is a written document describing the legal rights and obligations of the parties to the
contract.

Q: Explain criteria of valid contract.

A: For a contract to be valid and enforceable by law, it must meet certain criteria.

1. There must be mutual agreement or a meeting of the minds.

2. There must be an offer. An offer can normally be withdrawn up until the time it is
accepted, except the bid documents used in public works generally state that the bid may
not be written withdrawn once submitted.

3. The offer must be accepted. The acceptance completes the meeting of the minds. In low-
bid construction, the acceptance is the award of the contract to the low bidder.

4. There must be consideration for the service performed- payment.

5. The subject matter of the contract must be lawful. A contract to commit a crime is not legal
and not enforceable.

6. The contracting parties must have the legal capacity to enter a contract.

7. A contract with a minor is not lawful.

8. Contracts are signed by representatives of both the owner and contractor who have the
legal authority to sign for their organizations.

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