An agreement between two parties is not all that a contract is. In order to establish whether a contract is legitimate, four conditions must be met. The offer and acceptance, the consideration, the legal intention, and the competent parties are some of these components. The foregoing components must be present in order for a court of law to grant remedies for contract violations. A party's indication of desire to make a deal with another party is referred to as an offer. The requirement that both parties have a sincere desire to be bound by the law must be noted. Inquiries and discussions about a contract's conditions are not offers, for this reason the other party is required to accept for it to be legal. An offer is deemed to have been accepted when the other party indicates in writing, makes an oral promise or even undertakes the action requested in the offer. That notwithstanding acceptance needs to be done in a manner required by the offer.
Consideration is one party’s promise to provide something of value in exchange for a specified action from the other party (Haupt, 2008). Therefore parties to a contract are required to provide consideration for it to be termed as valid. Simply consideration is the value that induces the parties to be legally bound. Competency of the parties to be bound by the contract is very important for it to be deemed valid. Minors, intoxicated persons, mentally ill persons and individuals under guardianship are deemed as being incompetent. Finally, for a contract to be deemed as valid, it shouldn’t be against the law.
References
Haupt, A. (2008). Introduction to law. Cape Town: Pearson Education South Africa.
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