Components of a Valid Contract Research Paper Example | Topics and Well Written Essays - 1000 words

Components of a Valid Contract - Research Paper Example Certain kinds of contracts require documentation. These contracts have to acquire signatories from the involved parties under the rule of law to be abiding. Contracts are falling under this category abide by statue of frauds and vary from one place to another within varied jurisdiction. A promise or offer needs to be in a contract to render its validity. Offer is, usually, the first element in a contract to ensure that the contract is legally valid to be acceptable. There is a distinct difference in the offer to be an option or an advertisement. Making of an offer requires the availability of two or more parties, and these parties should be ready to agree to a mutual consent in agreement. The constituents of the offer should be open to both parties, and the return value should be acceptable. After presenting a contract offer, acceptance is a crucial validation element (Liuzzo, 2010). Acceptance should only prevail when the offer is clear and within the bounds of the law. Acceptance either can be in the form of writing if it is within the statue of fraud or verbally accepted. For example, promises made in marriages are acceptable in a condition that there is a written draft of the agreement made. In another form of contract for the sale of the car, the seller may gi ve an offer of $20,000. If the buyer accepts, the offer there is a definite creation of a binding contract in a written format. It is worth noting that counter offer has no classification as a form an acceptance. It is, usually, a form of rejection for the offer in place (Gillies, 2004). In a perfect example, if the car buyer counter-offers a purchase of $100,000 it counts as a typical rejection of the initial sale offer. In the case of the counter acceptance by the seller, the contract may automatically face its completion. However, in the case of rejection