ESSENTIAL

ELEMENTS OF

CONTRACT

 6 BASIC ELEMENTS

1 Offer 3 Awareness 5 Capacity

2 Acceptance 4 Consideration 6 Legality

 OFFER
A conditional proposal made by a buyer or seller to buy or sell an
asset, which becomes legally binding if accepted. An offer is also
defined as the act of offering something for sale, or the
submission of a bid to buy something.
ACCEPTANCE
Acceptance is the assent of the offeree to the term or all the
terms of the offer
by the offeror.

Note:
- An acceptance must be absolute
- communicated to the offeror
- maybe express or implied
 AWARENESS
For a contract to be legally binding, both parties must be
aware that they are entering into a new agreement. A'meeting
of the minds' occurs when the parties recognize the existence
of the contract. The contract is rendered invalid if a party
signed it under duress or can prove fraud, misinterpretation,
or undue influence.
 CONSIDERATION
Consideration is anything of value. The value should be the
inducement or incentive for the other party entering into the
agreement. That is, it must be the subject of the bargain
between the parties. Without consideration of the party the
contract cannot be enforceable
 TWO FORMS OF
CONSIDERATION
Executed consideration - where promises made in a contract are
delivered immediately
Executory consideration - where promises made in a contract will
be delivered in the future
 CAPACITY
Capacity-the legal right of a person or company to make
particular decisions, have particular responsibilities, etc: legal
capacity to do sth A person who has reached the age of 18 has
the legal capacity to contract as an individual.
 LEGALITY
entails a guarantee that the terms of the contract or
agreement strictly adhere to the law.


REFERENCES
https://blog.axdraft.com/contracts-101/7-essential-elements-of-a-
contract/
https://juro.com/learn/contractual-capacity
https://www.vedantu.com/commerce/legality-of-object-and-
consideration
https://ironcladapp.com/journal/contracts/elements-of-a-contract/
THANK
Y😊U