LEGAL

ASPECT OF A
BUSINESS

CONTRACT
WHAT IS A CONTRACT?
 CONTRACT

A Contract is a legally binding

agreement made between two
or more persons intended to
create a legal obligation
between them and to be legally
enforceable.
ELEMENTS OF A SIMPLE
CONTRACT

A person is not considered to be in a valid contract unless there

are certain elements present. These elements must be present
for a contract to be deemed valid (real) by the court. There are
seven elements that must be present, however, there are three
very important elements that must be present. These are offer,
acceptance, consideration.
 ELEMENTS OF A CONTRACT-OFFERAN OFFER IS A BID OR PROPOSAL
MADE BY ONE PERSON TO ANOTHER.AN OFFER MUST BE SPECIFIC –
THE OFFEROR MUST STATE EXACTLY WHAT HE/SHE IS INTERESTED IN
BUYING OR SELLINGAN OFFER MUST BE COMMUNICATED TO THE
PERSON TO WHO THE OFFER IS INTENDED TO BE MADE TOAN OFFER
CAN BE MADE IN WRITING OR ORALLY AND IT CAN ALSO BE IMPLIED
BY CONDUCT
ELEMENTS OF
A CONTRACT-
ACCEPTANCE
An Acceptance is an unconditional
agreement to all terms of an offer.
ELEMENTS OF A
CONTRACT
Consideration –is the price paid by
one party for the other. Thus if one
party promises to provide goods or
services, something of value must
be given in exchange. This may be
the form of money, goods, services
or it may be an act of forbearance.
ELEMENTS OF
CONTRACT

The Capacity to Contract- Parties to

the Contract must be over 18 years,
of sound mind, not under the
influence of drugs or incarcerated.
ELEMENTS OF
A CONTRACT
THERE MUST BE NO FORCE,
MISREPRESENTATION, OR
FRAUD. PERSONS SHOULD NOT
BE FORCED TO SIGN A
CONTRACT.
ELEMENTS OF A
CONTRACT
There must be an obvious intention
to create legal relation
In its simplest form, the intention to
create legal relations means that the
parties must intend to enter into a
legally binding arrangement in which
the rights and obligations of the
agreement are enforceable
ELEMENTS OF
A CONTRACT
A Contract must be legal- Thus,
agreements made between parties
concerning illegal drugs and any
other illegal activity are not a
contract.
QUESTIONS
What is a contract?

Name at least (2) elements of a contract

Explain anything you understood from the ppt presentation

CLOSING