Explain the elements of a good contract

September 10, 2019

There are seven elements of a good contract.
  1. Offer and acceptance: A proposal made by one party (the offeror) to another party (the offeree) indicating a willingness to enter a contract of the offeree to be bound by the terms of the offer.
  2. Agreement: The primary element that creates a contract between parties is agreement, which is a result of offer and acceptance, that forms consideration for the parties concerned
  3. Intention: intention to create legal relations consists of the readiness of a party to accept the legal sequences of having entered into an agreement.
  4. Consideration: It implies the price agreed to be paid for the promisor’s obligation by the promisee. It must be adequate and lawful.
  5. Capacity: The law presumes that anyone entering a contract has the legal capacity to do so. Minors are generally excused from contractual responsibility, as are mentally incompetent and drugged or drunk individuals.
  6. Consent: consent is the understanding that the parties have of the contract.
  7. The legality: Contracts cannot be created to govern the trade of illegal products or services.
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