When two competent parties make an agreement, it is considered binding. A binding agreement must have an offer and an acceptance. Both parties have mutual benefits supporting by consideration. The agreement can be formal, informal, written, oral or just plain understood.
To make an offer valid it must have definite terms (Price, payments and etc), it is communicate to only one party and both parties have to have serious intention in the offer.
To make an offer void, thru the rejection of one party, the goods is damaged or destroyed, one of the party become incapable (die, unsound, etc), counter-offer by another party, the offer had expired and one party withdrawn the offer.
An acceptance is valid as long as it is agreed voluntarily with no threat, duress, misrepresentation and undue influence by others.
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Consideration is the action that one party gives in exchange for the action of another party. Both parties must get some something of value in return for the contract to be legal and future transaction that has not taken place. Verbal agreement is considerate as a contract for the future upon the two parties agrees at the point of time.
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Form are required by law unless a particular form is required by statute which contract may be oral or written. In the sales of land and properties there will be agreement form to be signed, this is also truth for the rental agreement and finance loans.
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Capacity means the ability to understand one’s actions and the effects of those actions. Adults are assumed to be competent. It’s important for people who are making contracts to be of sound mind. This means that the people involved cannot be under the influence of any substances or be mentally ill. Convicts, bankrupt and enemy aliens are also considered to lack capacity. It is legal for minors to enter into contracts, but they cannot be bound by law because younger people have limited experience and are more vulnerable than adults
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For a contract to be a legal contract, it has to also be something that is not breaking the law in any way. You cannot be bound to an agreement that is illegal. The contract has to be legal in purpose for in to be enforceable.
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Genuine exists when consent is not by mistake of either party, it can be Uni that one party making the mistake or Bi that both parties making the mistake. Mistakes made can be to facts or through judgment. Genuine agreement must be communicated clearly between both parties.
To make an offer valid it must have definite terms (Price, payments and etc), it is communicate to only one party and both parties have to have serious intention in the offer.
To make an offer void, thru the rejection of one party, the goods is damaged or destroyed, one of the party become incapable (die, unsound, etc), counter-offer by another party, the offer had expired and one party withdrawn the offer.
An acceptance is valid as long as it is agreed voluntarily with no threat, duress, misrepresentation and undue influence by others.
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Consideration is the action that one party gives in exchange for the action of another party. Both parties must get some something of value in return for the contract to be legal and future transaction that has not taken place. Verbal agreement is considerate as a contract for the future upon the two parties agrees at the point of time.
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Form are required by law unless a particular form is required by statute which contract may be oral or written. In the sales of land and properties there will be agreement form to be signed, this is also truth for the rental agreement and finance loans.
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Capacity means the ability to understand one’s actions and the effects of those actions. Adults are assumed to be competent. It’s important for people who are making contracts to be of sound mind. This means that the people involved cannot be under the influence of any substances or be mentally ill. Convicts, bankrupt and enemy aliens are also considered to lack capacity. It is legal for minors to enter into contracts, but they cannot be bound by law because younger people have limited experience and are more vulnerable than adults
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For a contract to be a legal contract, it has to also be something that is not breaking the law in any way. You cannot be bound to an agreement that is illegal. The contract has to be legal in purpose for in to be enforceable.
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Genuine exists when consent is not by mistake of either party, it can be Uni that one party making the mistake or Bi that both parties making the mistake. Mistakes made can be to facts or through judgment. Genuine agreement must be communicated clearly between both parties.