Martinez
Business Law 1 Test 3 Essay
1. The six elements of contract formation offer, acceptance, consideration, capacity intent of
parties to contract and object of the contract. An offer must be made orally or written as long as
it is not needed to be written by law. Acceptance is basically accepting of the offer made by one
party by the other part is what is able to make the contract. Consideration is any agreement
made by parties that must be supported by suffcient and bargained for consideration, perhaps
something of value seeking to convince the person to make a deal. . To legally make a contract
the party must be able to understand and appreciate the terms of the contract this is the
capacity element. Intent of parties to contract is a li$le requirement to the formation of any
contract that there has been a mutual agreement of the parties on terms and elements of the
contract. Object of the contract is the last element since a contract is not any good if its object is
considered illegal or against public policy. In those cases the contract would be illegal and
unenforceable.
2. A) Formal contracts are contracts that are required to be written in order to be enforceable or
valid. They are not legal contracts unless they are written with specific language as required by
the law. Usually these contracts require seals, negotiable instruments and recognizances.
Informal contract is any contract that does not need specific legal requirements to be valid and
