The word contract usually brings a serious and legitimate vibe. Even though there are still a group of people who sign documents without clearly understanding all the terms stated, it’s not something that could be taken lightly.
‼️ There are 4 essential elements that need to be fulfilled for a contract to be automatically binding;
1️⃣ OFFER
An offer has to be made to the other party. And the specifics of the offer must be made clear together with the T&C’s of the contract.
2️⃣ ACCEPTANCE
The other party must accept the offer along with all its T&C’s. This acceptance usually comes in the form of a signature, but can also be verbal.
3️⃣ CONSIDERATION
After an offer is accepted, something of value is exchanged like cash, company shares, services, material goods etc.
4️⃣ INTENTION
The parties must have common intention to create legal relations, as not all contracts are made with the knowledge of entering a contract.
☝ And last but not least, a contract must conform to one’s capacity and free consent to be deemed as a valid and binding contract.
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