Consideration: This is the value that one party gives to another in exchange for a service or product, often money. This is one of the most important aspects of a contract, and without consideration, people usually don`t make a binding agreement. The term “agreement” is broader than “contract”, as in “Any contract is an agreement, but vice versa is not possible”. Indeed, all contracts contain the elements of the agreement, i.e. offer and acceptance, but not all agreements contain the main element that constitutes a contract, i.e. legal enforceability. So we can say that not every agreement is a contract. This means that the parties must agree on the same in the same way as provided with regard to their respective rights and obligations with regard to the execution of past or future promises. In an agreement, one person offers or proposes something to another person, who in turn accepts the same thing. In other words, the offer plus acceptance corresponds to the agreement, or we can say that an accepted proposal is an agreement. 1) Clarity: The saying goes that “good fences make good neighbors”.
Robert Frost used this saying to depict unnatural separation in his poem Mending Wall, but the separation and clarity of the parties in contracts is good. The parties must realize that they are separate entities and that they have their own motivations, considerations and profits in the contract. By ensuring clarity for the parties and their wishes, there can be no confusion as to who should do what in the contract. To be a legal contract, an agreement must have the following five characteristics: 2) Security: In the case of contracts, all parties must be sure of the outcome, regardless of the direction in which the parties are going. If everything goes well and both parties perform well, both parties should know exactly what they are getting. If there is a problem with one party`s performance, the other party must know exactly how to resolve the problem, return the product, or how the parties should resolve the dispute. Breach of Contract: This happens when a party is in default with its terms of the agreement. If either party fails to comply with the terms, the other party may sue them for damages. With sufficient evidence, a judge can award compensation to the injured party.
A written contract greatly facilitates the resolution of disputes. If the situation escalates into prosecution, the terms of the agreement (and what constitutes a violation) are clearly stated. If it is only an oral agreement, it is one party speaking against another, which is much more difficult to prove in court. In the Contracts Act, the word “mutual” refers to “mutual” or “mutual” or “give-and-take”. Therefore, the “mutual promise” is the promise that leads to a return of quid or part of it for the parties to the agreement. A legally favorable contract is an enforceable agreement between two or more parties. It can be oral or written. 3) Completeness: Based on certainty, a contract must answer all questions about the transaction and be self-sufficient (i.e. it does not need to be clarified). Without talking too much legally, the “four corners” rule (Parol`s rule of proof) generally only allows what is in the contract as proof of the agreement of the parties.
Therefore, in the event of a dispute, the court will only consider what is in the contract, and not what the parties have understood or agreed orally outside the written contract. Consideration: This is the value that one party gives to another in exchange for the service or product. It can be money or some other type of service. Without consideration, people usually don`t enter into a simple contract. . Contractual capacity: Both parties must be able to give their consent, otherwise the contract is void. Parties must be at least 18 years of age, have a healthy or stable mind, not be under the influence of drugs or alcohol and not be imprisoned […].