GROUP PRESENTATION

GROUP MEMBERS:
TAFADZWA K. CHINYENYE
MAKANAKA W. KUSOKORA
ELLEN T. MAGODI
THELMA R. CHIWAWU
RUTENDO NYANGANI
THE ESSENTIAL ELEMENTS
OF A CONTRACT
 INTRODUCTION
A contract is a mutual and legally binding agreement between two or more parties, that outlines their

rights and obligations

Contracts can be written or verbal, but it is advisable they be written to prevent any future disputes

The term “essential” means something of great or high importance

An essential element of a contract is a necessary component that must be present in order for the contract

to be legally enforceable

Thus, if any of these elements are missing or incomplete, the contract may be deemed invalid or

unenforceable in a court of law

Parties entering into a contract should carefully consider each element on a contract to protect their rights

and interests in the agreement

 PURPOSE OF A CONTRACT
 Establishing an agreement -outline the terms and conditions between parties

 Defining responsibilities -specify duties of each party

 Minimize risks –to protect parties from losses or legal issues

 Provide legal protection –serve as documents that can be enforced in court if one party fails to fulfill

their obligations

 To establish legal relationships

 Setting expectations-for how parties will interact with each other throughout agreements

 Provide clarity-helps parties work towards the same goals and objectives

 Dispute resolution
 THE ESSENTIAL ELEMENTS OF
A CONTRACT
There are a number of essential elements required for a valid contract to be formed;
1) Agreement between the parties
2) Offer and acceptance of the offer
3) Consideration
4) An intention by the parties to create a legal relationship\Mutual assent
5) Genuine consent of parties
6) Legal capacity
7) Legality
ESSENTIAL ELEMENTS OF A CONTRACT
 AGREEMENT BETWEEN THE PARTIES
refers to the mutual understanding and consent to the terms and conditions of the contract that will govern their

relationship

Both parties have a meeting of the minds , meaning they must understand and accept terms without misunderstanding

Is demonstrated through the offer made by one party and acceptance of that offer by the other party

A written agreement is desirable as it will provide evidence of the terms of the contract

The agreement must cover the terms of the contract such as the subject of matter, the rights and obligations of each

party and the consideration

 OFFER AND ACCEPTANCE
 An offer is a clear proposal by one party to another ,indicating a willingness to enter into a contract on specific terms

 One party(the offeror) presents a proposal or offer to the party(the offeree),who then accepts the offer ,thereby creating a

binding agreement

 The offer must be clear ,definite and communicated to the other party

 Once an offer is made ,the other party has the option to accept or reject it

 Acceptance indicates that both parties involved have mutually agreed to the terms and conditions laid out in the

agreement, without any modifications

 Acceptance makes the contract legally binding and enforceable

 For an offer to be formed ,there must be a valid offer and a corresponding acceptance
 CONSIDERATION
 Consideration is something of value exchanged between the parties as part of the contract (it takes the form of
money, goods ,services or promises to refrain from doing something)
 It is what each party receives or sacrifices as part of an agreement
 It serves as a way to ensure that both parties have a mutual understanding and intention to be bound by the
terms of the contract
 It helps ensure the contact is fair and mutually beneficial
 Prevents one party from claiming they were tricked into entering a contract
 It distinguishes a contract from a mere gift and ensures that each party gives something of value in return for
what they receive
 An example: Shiloh promises to write a 1500 word article, and the magazine promises to pay $150 for the
article. This is an example of consideration because both parties are exchanging something –the article and the
payment.
 GENUINE CONSENT

 It refers to the voluntary and genuine agreement of both parties to enter into the contract

 In order for consent to be genuine, it must be free from any kind of fraud ,misrepresentation,
mistake duress or undue influence

 It is important for parties to understand terms of contract before signing it or seek legal advice
if they have doubts or concerns

 If a party is forced or tricked into entering a contract, their consent is not genuine and the
contract may be voidable
 LEGAL CAPACITY
 Refers to the ability or legal competency of the parties to enter into a contract

 Means both parties must be of sound mind and have reached legal age of majority(in most jurisdictions usually
18 years old)

 Both parties must understand the nature and consequences of the contract

 The following may not have legal capacity to validate a contract;

a) Minors

b) Convicts under sentence

c) Someone under the influence of alcohol or drugs

d) Someone with mental incapacity e.g dementia

 Capacity safeguards vulnerable individuals from being bound by agreements they cannot fully comprehend
 LEGALITY
 Purpose of the contract and actions to be undertaken must be legal

 Contracts with illegal purposes such as agreements to commit crime or violate public policy are considered
void and unenforceable as they seek to harm others

 It is important that the subject of matter and performance obligations of the contract comply with the law in
order for it to be valid

 Contracts must align with the law to be enforceable and to maintain the integrity of the legal system
 MUTUAL ASSENT

 Also known as the “meeting of the minds

 It refers to the agreement between the parties involved in a contract regarding the terms
and conditions

 It means both parties have a clear understanding or and agree to the essential terms and
conditions of the contract

 Requires that there be no material misunderstandings or misrepresentations between the

parties

 Parties must have a serious intent to be legally bound by the terms of the contract for it to
be valid

 Both parties must understand and agree to the terms; and there must be a clear intention to
enter into a legal relationship
 CONCLUSION
The essential elements form the fundamental blocks of a legally binding agreement. Each element serves
a specific purpose and contributes to the enforceability and fairness of the contract.

 They create an enforceable contract that protects the rights and obligations of parties involved

 They create a clear ,fair and binding agreement

 Reduce the potential for disputes

 Provide resolutions if conflicts arise

 Provide trust and stability in professional relationships

 Ensure fairness in contractual relationships

 Provide necessary criteria for a contract to be valid