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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
