3b Contract elements and legal

What is a contract?

An agreement between two or more parties that is legally enforceable.

What are the three key elements of a binding contract?

Intention to be legally binding, agreement (offer and acceptance), and consideration.

What does “intention” mean in contracts?

Both parties must intend to create legal relations.

Why is proving intention important?

It ensures both parties genuinely meant to enter a binding agreement enforceable by law

What is an agreement in contract law?

An arrangement where one party makes an offer and the other party accepts it.

How can acceptance of an offer be given?

Acceptance can be express (verbal/written) or implied (through actions).

What is consideration in a contract?

The benefit each party receives in exchange, such as payment for goods or services.

How does consideration differ from a gift?

A contract requires something of value exchanged, while a gift does not.

What are the three additional legal requirements for a valid contract?

Capacity, consent, and legal purpose.

What does capacity mean in contracts?

Both parties must have the mental ability and legal age (18+) to understand the contract.

What does consent mean in contracts?

Agreement must be genuine and voluntary, not given under pressure, duress, or misrepresentation.

What does legal purpose mean in contracts?

The contract must have a lawful purpose, agreements requiring illegal acts are invalid.