Legal Requirements for a Contract

Running Head: LEGAL CONTRACT
TITLE; THE LEGAL REQUIREMENTS OF A CONTRACT
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THE LEGAL REQUIREMENTS OF A CONTRACT
Contracts are crucial as they bind agreements and decisions of involved parties. Most business agreements fail because a legally binding agreement lacks. An example of business associates who agree to raise capital to start a company, but one fails to stick to the agreement later is used in this discussion. There are crucial elements that make contracts legally binding. These aspects that are necessary for a successful contract include; competent parties, legal intent, the offer, consideration of agreement and acceptance of the offerCITATION KIm18 l 1033 (Kimberlee, 2018).
First, the parties were competent enough to agree. They were of legal age, and of sound mind to understand what they were doing thereby meeting a competent party requirement of the contract. A legal intent ensures that both parties stick to what had been agreed earlier. One of the business associates did not act according to the agreement therefore not meeting the legal requirement of the contract.
The consideration for an agreement is also crucial as it stipulates what is involved in the agreement such as money or a valuable commodity. In this case, the consideration for the agreement was money. This met the legal requirement of a contract as it was clear that both business associates were to contribute an equal amount of cash.
The offer highlights the purpose and the reasons for the contract.

It stipulates what should be done and what should not be done. The agreement did not meet the legal requirement of a contract as the purpose was well highlighted, but one business partner failed to do what was agreed. The offer ensures that what is contained in the contract is achieved and delivered. The acceptance of the offer which is another crucial element did not meet the legal requirement of a contract as there was no legal document that was signed with the terms and conditions of the agreement. “Acceptance of an offer is a voluntary process not influenced by any outside factor, no blackmail or threats”CITATION KIm18 l 1033 (Kimberlee, 2018).

Reference
BIBLIOGRAPHY Kimberlee, Leonard. (2018, April 20). “Five Requirements of a Contract.” chron. Retrieved April 27, 2018, from www.smallbusiness.chron.com/5-requirements-contract-15616.html