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Elements Of An Enforceable Contract

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Business Law
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UArizona Global Campus
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Running head: ENFORCEABLE CONTRACTS 1
Elements of an Enforceable Contract
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ENFORCEABLE CONTRACTS 2
Elements of an Enforceable Contract
As a business owner or stakeholder, how can you ensure that your contracts are
enforceable?
In business, it is important to ensure that agreements are enforceable. In case of breach of
contract, the non-breaching party needs their rights to be protected. This can only happen if the
contract was enforceable. To ensure that the contract is legally binding and enforceable, it must
satisfy five elements. The first element is the offer. This refers to what one party agrees to do by
signing the contract. It should be clear to ensure that both parties understand the expectations.
The second element is acceptance. This refers to the other party agreeing to the conditions
provided in the offer. It can be oral or written. However, it must be voluntary and the parties
involved must agree to the terms without any external factors influencing their decision
(Koffman, 2010).
The third element is a consideration. This refers to what the party is giving to complete
the agreement. This must be something of value such as a specified monetary amount. It should
be clearly stated and understood by both parties. The fourth element is a legal intent, for a
contract to be enforceable, it must be lawful and adhere to regulations of the country where the
contract applies. Finally, there must be the competency of the parties involved. The people
entering into the agreement must be competent. This means that they must have the legal
capacity to enter into a contract. The legal capacity is determined by age and the state of mind
(Koffman, 2010). Impaired people and those suffering from dementia may be considered to lack
the mental capacity to enter an agreement. When an agreement meets these five elements, it is
considered enforceable, and parties are protected in case of breach of contract.

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Running head: ENFORCEABLE CONTRACTS Elements of an Enforceable Contract Name Institution Course Instructor’s Name Date 1 ENFORCEABLE CONTRACTS 2 Elements of an Enforceable Contract As a business owner or stakeholder, how can you ensure that your contracts are enforceable? In business, it is important to ensure that agreements are enforceable. In case of breach of contract, the non-breaching party needs their rights to be protected. This can only happen if the contract was enforceable. To ensure that the contract is legally binding and enforceable, it must satisfy five elements. The first element is the offer. This refers to what one party agrees to do by signing the contract. It should be clear to ensure that both parties understand the expectations. The second element is acceptance. This refers to the other party agreeing to the conditions provided in the offer. It can be oral or written. However, it must be voluntary and the parties involved must agree to the terms without any external factors influencing their decision (Koffman, 2010). The third element is a consideration. This refers to what the party is giving to complete the agreement. This must be something of value ...
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