The elements of a contract

A contract always requires the presence of four components, but sometimes requires five. The five are:

v Mutual assent

v Consideration

v Possession of contractual capacity by the parties

v Legal objectives

v A writing, if required by statute

Mutual assent, the essential prerequisite for every enforceable contract.

The law of contracts does not require that the consideration of each party be of equal value. Its only requirement is that the consideration have legal value, that is, some economic value no matter how slight.

A frequent question in cases involving disproportionate consideration is the capacity of the parties to contract. “Capacity” means “competency,” or the ability to understand the nature of the contract. Note that the term refers to the ability to understand, not to whether a party actually understood. In other words, the capacity requirement does not protect people who misunderstand a bargain or who do not read contracts. Rather, the law permits certain categories of persons – minors, the mentally ill, and the intoxicated – to disaffirm, or void, their contracts. Contracts with persons whom a court had declared legally incompetent before the time of contracting are automatically void.

By definition, a contract must have legal objectives, since a court will not enforce illegal ones. Some contract-like arrangements are prohibited by law. Arrangements to fix prices or to purchase illegal drugs are just two examples.

The final requirement, a writing – a written contract – only comes into play when a statute actually requires one. Written contracts are not the norm; oral contracts are.

Learn the words and word combinations on the theme “Contract”

CONCLUSION OF ЗАКЛЮЧЕННЯ

A CONTRACT КОНТРАКТУ

draft contract проект контракту

to make a contract, заключати контракт

to conclude a contract

to negotiate a contract обговорювати контраст

to initial a contract парафірувати контракт

to sign a contract підписувати контракт

the date of signing a contract дата підписання контракту

contract, duly signed by контракт, підписаний

authorized representatives належним чином уповноваженими особами

appendix (to contract) додаток (до контракту)

listed in appendix перелічений у додатку

attached to contract, annexed to contract доданий до контракту

mentioned in appendix зазначений у додатку

contract clause, contract article стаття контракту

FULFILMENT OF ВИКОНАННЯ

Дата добавления: 2015-11-16