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For questions about laws related to contracts, an agreement between two or more parties.

Contracts are generally composed of:

  1. 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.

  2. Intention to be legally bound
  3. 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

Canonical answers:

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