Ag BusinessELEMENTS OF A CONTRACT

A social agreement between 2 or more

parties which sometimes may not

be legal

A legally binding agreement that is

enforceable by law.

Definition: Agreement Definition: Contract

WHAT IS A CONTRACT

• Offer• Acceptance• Legal Purpose• Mutuality of Obligation• Certainty of Subject Matter• Consideration• Competent parties

7 ELEMENTS OF A CONTRACT

Definition: offerer makes a proposal to another party.

OFFER

Offerer- The person who is making the offer

ACCEPTANCE

Definition: When an offeree agrees to all the terms and

conditions of the offer.

Offeree: The person who is choosing to accept or decline the offer

Definition: The objective of the contract must consist of legal activities.

LEGAL PURPOSE

Defintion: Both parties understand and assent to the objectives of contract.

MUTUALITY OF OBLIGATION

Meeting of the Minds

Definition: The obligations of the contract must be clear so that a court

of law can understand both parties obligations.

CERTAINTY OF SUBJECT MATTER

Definition: There must be benefit or detriment to one or both parties.

CONSIDERATIONS

Definition: The law generally presumes that everyone has the capacity to contract.

COMPETENT PARTIES

HOWEVER* You are not considered competent if you are under 18

Who signs for minors?

1.)Make a contract with a business owner in class.2.) Incorporate all 7 elements into your contract.3.) HINT*-go through each slide of notes and make sure you have each element incorporated into your contract.4.) Both parties must sign and date their contract.

MAKE OR ACCEPT AN OFFER