Skip to content

Ask an Academic

  • Home
  • Ask a Question
  • Contact Us
Law and justice statue

What are the basic requirements for the successful formation of a contract?

September 25, 2019 by AskanAcademic.com

An explanation of what the requirements are, for the successful formation of a contractual agreement.

Question

What are the basic requirements for the successful formation of a contract?

Answer

Contract formation is very important. If a contract has not been formed, the parties involved cannot be deemed to be under any obligations. Therefore, it is imperative to have a good understanding of the basic elements that need to be present for a contract to be successfully formed.

For a contractual agreement to be legally binding, there are four basic requirements to be met:

  1. Offer
    An offer is merely a statement or another form of indication that the individual is ready to enter into a contract with another individual on certain specific terms. The offer must be communicated without further requirements of the person receiving it. It also has to be clear that the offeror is prepared to be bound by the terms once offer is accepted. The offer must not be a mere “invitation to treat” (a general intent), such as displaying goods in a store. In such a situation the offer is made when the customer presents the goods to the cashier.
  2. Acceptance
    Acceptance can be indicated in different ways by the offeree. The acceptance must be clear and unequivocal, without conditions attached to it. The acceptance has to be made before the offer has expired and/or before it is withdrawn by the offeror.
  3. Intention to Create Legal Relations
    The parties must intend that legal consequences will result from their contractual agreement. This is especially necessary in domestic and social agreements.
  4. Consideration
    It is up to the parties to decide whether or not the consideration is adequate. The law only requires that there be sufficient consideration. However, something of value must be given. The consideration cannot relate to something given or promised in the past and it must be a new promise or some new benefit in exchange for the offer.

References

Post navigation

Previous Post:

Economic factors in the Cuban revolution

Next Post:

How do we effectively deal with the increasing average age?

Search Q&As

Categories

  • Art Media and Literature (74)
  • Business and Management (256)
  • Computing and ICT (14)
  • Construction and Engineering (35)
  • Education (90)
  • Environmental Sciences (2)
  • Finance and Economics (91)
  • Health (64)
  • Languages (12)
  • Law (88)
  • Mathematics and Statistics (2)
  • Medical Sciences (19)
  • Politics and International Relations (83)
  • Research Methodology (1)
  • Science (49)
  • Social Sciences (101)

Archives

Who We Are

Askanacademic.com is owned and operated by All Answers Ltd, a company registered in England and Wales. Company Registration No: 4964706. VAT Registration No: 842417633. Data Controller No: Z1821391.

Registered office:
Venture House
Cross Street
Arnold
Nottingham
NG5 7PJ

Main Navigation

  • Home
  • Ask a Question
  • Contact Us

Legals

  • Cookie Policy
  • Privacy Policy

Popular Categories

  • Business and Management
  • Law
  • Finance and Economics
  • Health
An an Academic Logo
© 2023 Ask an Academic | WordPress Theme by Superb Themes
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Reject
Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT