When we make the contract, we thought that it is
only based on terms and conditions of both the parties. But in actually, it is
not like that. It involves lots of legal terms and language that makes the
contract legal. So there are various reasons that make the contract difficult
to read or comprehend. First of all, it involves lots of legal terminology that
is difficult to be understand by a person who does not have studies law before.
It is made as per the law that is based on average requirement of the people.
So sometimes, there are so many clauses which are not applicable to all the
persons. So it makes difficult for them to understand it. Sometimes, the
contracts are too long and complicated for understanding. In actually, we
should not sign any contract without understanding of its all the terms and
conditions that are written in legal language.
In actually, there are different
elements of a contract that make it valid and legal. So it is important for a
manager to have basic understanding about all of these elements. But there two
most important elements out of all these elements that are important to know to
for a manager because without these two elements, no contract will be
considered as valid and legal between two or more parties. These two elements
and acceptance –It is important that there should be
offer and acceptance. Offer must have proposal and terms and condition of one
party and it should be accepted by the other party. If there is mutual consent
of both the parties, they can enter into a contractual relationship.
by Law - The other important element is enforceability by
law. It is important a contract should consist of all the legal elements that
can protect the aggrieved party by the intentional or non-intentional loss of
the other party through a legal process.