Key Elements Of A Good Contract

A contract is a documented treaty between two or more parties and is enforced by the law. The involved parties must concur with the stated terms. In everyday life, we come across many contracts. For example, a student signs a contract when they borrow a book from a library. Also, the library has to stamp a document a sign of sealing the deal. Contacts are most common in the business world more than any other part of the society. Business entails several dealings and sometimes may involve huge sums of cash. As such, the involved parties must not risk doing business without having a signed agreement. A good contract must have four main elements. In the paper below, we will state each of these elements and discuss each of them in details. In addition, we will look at the importance of each element of the contract.
A contract can only exist if two parties must have some common ground. As stated earlier, a good agreement has four key elements. These are:
i. Offer and acceptance ii. Intention to create legal relations and consideration of the terms of the contract iii. Legal capacity iv. Intention of legal consequences

A contract should not be one-sided rather two sided. It should be a mutual pact between the two parties. The offer is like a promise. Its main aim is to ensure the involved parties make a promise to commit something or refrain from doing something. Let us take the example of tenancy. When vacating into a new house, the tenant makes the offer of residing in the stated residence and paying the rent. The landlord makes the offer of providing services such as water, power, and security without fail. For a contract to be legally binding, there is a need to draft the offer as the parties have agreed. In this way, no party will deny what was agreed. After making the offer, both parties must accept the terms of the