Contract

What is a contract

A contract is a formal agreement between two or more individuals, organizations or governments, and entails some rules and details governing each of the parties involved. For example, in an organization, a contract may outline the roles and responsibilities of an employee or supplier for a given period of time.

Elements of a contract

A valid contract is composed of a number of elements. For example, a contract is said to be valid if it has an offer and acceptance. What happens is that one person or organization must create an offer and present it to the other party, out of which the latter is supposed to accept or deny the offer, based on the stipulated may be terms and conditions. If he or she accepts the offer, such a contract is said to be valid. Based on the definition of a contract, as an agreement between two or more parties, the same way those parties involved must reach into an agreement before anything else. Actually, one party creating an offer and the other accepting the offer marks the first step of any agreement. In addition, a valid contract must create a legal obligation. Precisely, besides the creation and acceptance of an offer between the parties involved, there is need for going a step further and creating a legal obligation as well. A legal obligation becomes necessary when one party breaches the details of the contract. For example, if the contract entails an employee working in a given organization for a specific duration and being paid a given amount of money, but that employee happens to breach the contact while he or she is half way the agreed duration, such an organization can seek legal interventions in order to find a way out. In addition, for a contract to be valid, the consent of parties must be in place. This means that one party should not coerce another to enter into a contract. Moreover, parties entering into a contract must competent in terms of having a sound mind. Consecutively, a contract is valid if the object of the contract is lawful. Parties cannot enter into an agreement to supply illegal drugs. Subsequently, the