The Purpose of a Contract
~Contracts exists to make business matters more predictable
~Frequently, a series of contracts may become mutually dependent
Elements of a Contract
~Agreement
– 1 party must make a valid offer & the other party must accept it (buying/selling sth)
~Consideration
– There has to be bargaining that leads to an exchange between the parties CAN’T only be
1 WAY PROMISE
~Legality
– The contract must be for a lawful purpose (not sth like a crime)
~Capacity
– The parties must be adults w/ healthy minds when contracts are formed (no minors,
intoxicated, etc.)
Contracts
– A promise that the law will enforce
~Development of Contract Law
– Common law once required all contracts to be in writing w/ a fixed seal (12th, 13th
