VALID CONTRACT
 Contract
 ________________: “legally enforceable agreement between two or more parties.”
 Contracts can be:
 Written
 _________________
 Handshake
 Four Elements Of A Valid Contract
 Four Elements:
1. ______________ – initial step in forming a contract
2. Consideration – something of value exchanged by each party
3. _____________- having the legal and mental ability to enter into a binding contract
4. Legality – subject matter of the contract must not be against the law
 Written v. Unwritten Contract
 ______________ Contract:
 Formal, easier to use as evidence
 Clearly highlights _______________, conditions, and infractions of contract
 Must be ___________ by all parties to become valid
 ______________ Contract:
 Informal, becomes “my word v. your word”
 Conditions are _____________; speculation
 Only becomes valid through recording or video evidence
 Examples Of Contracts
 ___________________ – Property borrowed in exchange for money. Payments made
monthly – failure to pay = fines & loss of property.
 ____________________ – Agreement between you & the credit card company. Minimum
payment will be noted on bill.
 ____________________– Agreement between employer & employee. Include salary, hours,
dress code, and infractions resulting in disciplinary actions.
 ____________________– Agreement between company & customer. Proof of a purchase
and return policy.
 Violations of Contracts
 Lawsuits
 ______________
 Fines or enforcement of payment
 Removal from company or workplace
 __________________