What is a Contract and its Element

What is a Contract and its Element?

Contractsdefine agreement between parties.Or Acontractis an agreement between two or more parties to do, not do, or promise something. Contracts can come in many forms they can be oral or written, implied or express, and legally enforceable or not. The strongestcontract, in terms of enforceability, has an offer, acceptance, consideration for the exchange, clearly sets out the terms of the agreement without ambiguity, and is signed by the involved parties with proper capacity to enter into thecontract. Weaker contracts include verbal agreements or contracts drawn up by parties in direct violationof state or federal laws. There are numerous aspects related to valid contracts; in fact, an entire course in law school is often devoted tocontractlaw.While we tend to think of written contracts when we talk about contracts, the most common type ofcontractis actually an oral contract. In fact, we pretty much enter into at least one oral contractevery day. For example, a parent might tell his or her child that they will get a reward if they behave properly at a certain event. If the child agrees, then you have a type of oralcontract albeit one that isn't legally binding!

Contracts can be implied or express. That is, the entirecontract, or one or more of its terms, can be implied or express. Typically, when we think of contracts we think of express contracts. For example, in acontractfor a monetary loan, you will likely promise to pay a certain monthly rate at a certaininterest rateuntil the loan is paid off. In addition, you probably will agree to late payment fees as well. These terms are explicitly laid out in an express,written contract.

Sometimes, however, acontractterm or the entirecontractitself is implied. For example, when you order food at a restaurant you are entering into a implied, oralcontract. You and the server do not explicitly state the offer and acceptance for the steak you ordered with a list price of 32 US Dollars (USD) but that agreement is implied. The basicelementsof acontract, namely an offer, acceptance of the offer, and consideration for the exchange, are all implied.

Offer and acceptance, sometimes also called meeting of the minds is a fundamental part to acontract. Without it, we might bind parties to contracts who did not want or intend to be party to thecontract. Consideration, on the other hand, ensures thatsomething is being exchanged. In some cases, the law requires that consideration be adequate, that is, a relatively reasonable price, or nominal, where just a dollar will do. Other times, the requirement of consideration may be waived in the interest of preventing injustice.

Contracts may be enforceable by law or they may not. The example of the agreement between the parent and child would not be enforceable by law whereas the agreement for a loan likely would be enforceable by law. Whether acontractis enforceable by law depends on numerous factors, the primary factor being whether the parties tocontractintended thecontractto be legally binding or legally enforceable.

Acontractmay not be legally enforceable for a variety of factors. Problems on the face of thecontractcan make it void. If one of the parties to thecontracthas diminished capacity whether it be due to age or mental condition thecontractwill most likely be unenforceable.Fraudormisrepresentationby a party to acontractcan void thecontractas cancontractterms that violate controlling laws.Legal Contract

A signedlegalcontractwill ensure that all parties understand the expectations. First and foremost, alegalcontractmust be signed by all parties. Usually, the signatures are located at the very end of thecontract, along with the date it was executed.

In most developed countries, children cannot be bound bycontractsthat they may sign or to which they may have verbally agreed. There are instances, however, when thelegalcontractage for certain agreements may include minors. The laws and exceptions regardinglegalcontractage can vary from one jurisdiction to the next.Difference between a contract and an agreementA contract is an agreement between parties that is legally enforceable. A simple "agreement" is an arrangement between the parties which may or may not contain the necessary elements to be enforceable before a court of law.

In Simple Words:

A Contract is enforceable by law while an Agreement may not be enforceable by law.

Read more:http://wiki.answers.com/Q/Difference_between_a_contract_and_agreement#ixzz19FpgQOW4Promises or Commitment - Is There a Difference?

A commitment is an action. A promise is a word. Actions speak louder than words. Yes, you can promise to make a commitment - that's what a wedding ceremony is. It's a ceremonial and verbal promise that enacts the commitment. But you can break marriage promises - so commitment is about your way of life, not necessarily about what you say - but what you do, day in and day out.

Can a married person be tempted to break their promises? Sure. But a committed one doesn't. A committed person stays the course, they stay true to their vows - they look for the good in the bad and they do their best to make the relationship work.