Business Studies, asked by mannanp1740, 1 year ago

What are the 9 element in a contratct to make it valid

Answers

Answered by maryamkincsem
0

The basic elements of a valid contract include the following:



(1) offer : An offer is a two way promise to act or refrain from acting, made in exchange for the same thing in return.



(2) acceptance : Acceptance must generally be made in the manner specified by the offer.



(3) consideration : Each party is liable to provide something of value that persuades the other to enter the agreement.



(4) mutuality of obligation : Both parties must be bound to perform their obligations or the law will treat the agreement as if neither party is bound to perform.



(5) competency and capacity: The person entering a contract possesses complete legal capacity to be held liable for the duties is entitled to undertake, unless the person is a minor, mentally unstable, or intoxicated.



(6) a written instrument: It is not necessary for every contract to be in writing in order for it to be to valid and binding on both parties. But nearly every state legislature has enacted a body of law that identifies certain types of contracts that must be in writing to be enforceable.



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