Elements required for the formation of a contract. Management Article (Article Sample)

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Question 1
Outline the elements required for the formation of a contract
A contract is one of the most important legal concepts in this free society today because it is crucial in creating order within our social, economic and political landscapes. A contract is basically a legally binding agreement for which the breach or violation of the terms of agreement has remedies entrenched in law CITATION Ell17 \l 1033 (Elliot & Quinn, 2017). As such, the law takes into consideration the manner in which the contract was drafted, the parties involved and the purpose for which the contract was drawn. For a contract to be valid, there are elements that need to be fulfilled. These includes:
1 Mutual consent – for a contract to be valid, the parties concerned have to reach an agreement. A mutual consent is signified by an issuance of offer and followed by an acceptance of the offer CITATION Ell17 \l 1033 (Elliot & Quinn, 2017). An offer demonstrates the willingness of the offeror to enter into an agreement with another party. The offer needs to be clearly communicated the terms of offer to the interested party. If the other party or the offeree is satisfied with the terms outlined in the offer, he/she demonstrate assent of the terms by issuing an acceptance to the offer. This should be done in a way that is acceptable to the offeror. Acceptance occurs when an offeree confirms an approval for the agreement. There should be acceptance by the offeree(Wilkinson et al., 2016). In case one party changed or corrupted the terms of the offer, a rejection is allowed and the action is termed as a counteroffer. There should be a mutual agreement in case either of the parties intends to make any changes in the offer.
When the offeree comprehensively reads though the offer, he or she makes an acceptance once they are familiar with the rules and regulations as constituted in the contract. Moreover, the individual extending the proposal should similarly need to listen to or read that the offeree is accepting the proposal.