Presentation on theme: "Contracts Mr. Dukes Business Education & Computer Science."— Presentation transcript:
Contracts Mr. Dukes Business Education & Computer Science
Definition A contract is an agreement reached after sufficient consideration to do, or refrain from doing, some legal action.
Contract A contract is considered valid when two or more parties with capacity make an agreement involving valid consideration to do or to refrain from doing some lawful act.valid consideration
Terms Valid means legal; not void, legally binding or effective. Consideration is the reason a person chooses to enter into a contract: what is given in exchange for service or promise of services; the price given and paid; the inducement.
Basic Components The three basic components of a contract are: the offer, the consideration, and the acceptance.
Six Elements of Valid Contracts 1. All parties must have capacity to enter the contract. 2. An offer must be made. 3. Consideration must be exchanged. 4. The parties must be in mutual agreement. 5. The contract's object and purpose must be legal. 6. The form of the contract must meet the legal requirements.