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;
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.
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.
After an offer is accepted, something of value is exchanged like cash, company shares, services, material goods etc.
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.
Share on facebook
Share on twitter
Share on telegram