Understanding The Six Elements Of A Legally Enforceable Contract

Understanding The Six Elements Of A Legally Enforceable Contract

An agreement must contain four critical elements to qualify as a contract and attract the respective obligations. These include an offer, acceptance, consideration, and intention to generate legal relations. When making low-value transactions such as purchases from a local store, these steps are instant. However, the process becomes lengthy if a transaction involves a high-value transaction. This paper discusses the elements of a legally enforceable contract involved in a land purchase transaction.

Steps Involved in a Land Purchase Transaction

The initial step in the land purchase process is an offer. An offer ought to be specific, complete, and capable of being accepted (Burton, 2009). In this case, a local daily advertisement is made about the land sale. The advert contains all critical elements, such as the asking price, negotiation window, and location.

The next step is acceptance. Here, the offeree must accept the initial offer and the accompanying terms. For instance, the acceptance price must be within the realms of the negotiation window (Burton, 2009). Any contrary suggestion is a counter-offer and amounts to the rejection of the initial offer. Next is to create legal relations, which may include documentation such as the memorandum of understanding.

Subsequently, consideration of a contract occurs. Consideration refers to the benefits the parties in a contract get after making a sacrifice (Liuzzo & Hughes, 2019). In the case of a land sale, there is instant cash payment if the land seller accepts to sell it outside the asking price. Also, the legality and capacity of a contract delve into whether the contract has legal standing.

The final step implemented in the land transaction is an intention to create legal relations (Liuzzo & Hughes, 2019). It involves the signing of legally binding agreements. In this case, land contract agreements specifying final terms are applied.

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Conclusion

Summarily, a legally enforceable contract contains six key elements. The first one is an offer constituting the specific terms of one party before entering into an agreement. Secondly is acceptance, referring to the acceptance of the specific terms of a contract. Another is an intention to create legal relations, which may include documentation such as a memorandum of understanding. There is also a consideration that benefits the party that promises to do something about the contract. Also, the legality and capacity of a contract delve into whether the contract has legal standing. Finally, a legal contract must contain certainty about some vital aspects of the contract.

References

Burton, S. J. (2009). Elements of Contract Interpretation. Oxford University Press.

Liuzzo, A. L., & Hughes, R. C. (2019). Essentials of Business Law. Mcgraw-Hill Education.

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Understanding the six elements of a legally enforceable contract is an important part of understanding business law. For this assignment, please describe a hypothetical situation in which two parties are in the process of creating a contract. Describe each step of the process, including offers, consideration, negotiations, and agreement. Remember to get creative, and keep in mind that you are describing the situation as if it were actually occurring. You may want to create characters and include a dialogue. In your conclusion, please summarize, in your own words, the six elements of a legally enforceable contract.

Understanding The Six Elements Of A Legally Enforceable Contract

Your paper should be at least 1 page, double-spaced.

Liuzzo, A. (2021). Essentials of Business Law (11th Edition). McGraw-Hill Higher Education (US). https://online.vitalsource.com/books/9781264126507

Chapters 7-11

02 Weblinks
Legal Dictionary
Here is one of the most comprehensive legal dictionaries on the internet. The definitions are clear and easy to read. It is fully searchable and indexed. This online legal dictionary is a great place to broaden your knowledge of business law terminology.

Contract Law
Findlaw.com is an online legal reference site. On this page you will find links to case studies, resources for hiring layers, a legal glossary and a step by step introduction to contract language.

Steps In Contract Consideration
This is a step by step guide to consideration during negotiation. Memorizing this material in advance of negotiating your next business contract may prove worthwhile. The steps presented here will help you to maximize your returns while minimizing the potential for exploitation.