Contract Law
Contract law is defined as the body of law that governs formation, enforceability and dissolvability of contracts or agreements. Contract law’s primary concern is to ensure that parties can trust each other and perform their obligations as agreed. Contracts are enforceable by law when a court formally recognizes a valid agreement between two parties. The main categories of contract law embody the transactional obligations between two or more parties, and the terms associated with those obligations.
Formation of a contract
Forming a contract requires two or more people to agree on contractual terms and abide by the agreed upon terms. To form a contract, the two primary parties must enter into a binding agreement, which includes an offer, acceptance, consideration, and legal capacity.
Offer
An offer is a proposal by one party to enter into a contract with another party. In order for an offer to be binding, it must clearly state an intention to be legally bound. An offer must specify the terms and conditions of the agreement, including the price and payment schedule.
Acceptance
Acceptance occurs when one party agrees to the offer made by the other. For an offer to be binding, the acceptance must be entirely in line with the terms of the offer and must occur without any modifications or conditions.
Consideration
Consideration is the exchange of something of value, such as goods, services, or money. Both parties mu
