For questions about laws related to contracts, an agreement between two or more parties.
Contracts are generally composed of:
Offer and acceptance
This means the agreement of all parties to the same terms - where the terms are accepted with modifications, it is considered a counteroffer, and all other parties must agree to them.
- Intention to be legally bound
Consideration
This is the exchange of something of value between the parties. This may be goods, services, a promise to do or abstain from acting.
Additionally:
- The parties must have the capacity to enter into a contract
Generally, this means that those deemed mentally incapable, such as children or those under the influence of drugs, will not be able to enter into binding contracts. - The form and purpose of the contract must be legal
- The parties must consent
