Contract Definition of a contract

A General Introduction
to Contract
Definition of a contract
A contract is an agreement between
competent parties based on the
genuine assent of the parties,
which is supported by consideration
and made for a lawful objective
and in the form required by law, if
The basic requirements of a valid contract
Agreement/genuine assent (a meeting of
2. Valid consideration----mutual promise
3. Formation (offer + acceptance = contract)
4. Capacity of parties to make a contract
5. The legality of purpose or object of
6. The form of contract must conform to the
legal requirements
A valid contract should include all these essentia
elements and meet all these requirements.
Classification of contract
Written or oral contracts
Bilateral or unilateral contracts
Express or implied contracts
Executed or executory contracts
Valid, void, voidable contracts
(P98—P104 Fundamentals of Business
According to their enforceability and
validity, contracts can be classified into
the following ones:
1 ___ has the necessary contractual
elements, which is enforceable and has
legal binding force.
2 ___ is not a contract at all. It has no
legal effect. No parties should be bound
by it.
3 ___ is a valid contract except that one
party is entitled to rescind it.
Typical contract provisions
 Duties and obligations
 Representations and warranties
 Termination clauses
 Remedy clauses
 Arbitration clauses