BUS 415 Week 3 - DQ 1 - 7468

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Wk3 dq 1…What are the four elements necessary to form a contract? What is the effect of legal capacity on any of the three elements?  Define and discuss the concept of consideration as it relates to contract formation.

In order to define the four elements necessary to form a contract, we must first understand what a contract is. According to (Cheeseman, 2010), “A contract is an agreement that is enforceable by a court of law or equity. A simple and widely recognized definition of contract is provided by the Restatement (Second) of Contracts: “A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.”

 

According to (Cheeseman, 2010), these are the four elements necessary to form a contract. “For a traditional contract or an e-contract to be enforceable, the following four basic requirements must be met:

1.    Agreement. To have an enforceable contract, there must be an agreement between the parties.
2.    Consideration. The promise must be supported by a bargained-for consideration that is legally sufficient.
3.    Contractual capacity. The parties to a contract must have contractual capacity.
4.    Lawful object. The object of the contract must be lawful. Most contracts have a lawful object. However, contracts that have an illegal object are void and will not be enforced.


What is the effect of legal capacity on any of the three elements?

           

      According to (Cheeseman, 2010), “Generally, the law presumes that the parties to a contract have the requisite contractual capacity to enter into the contract. Certain persons do not have this capacity, however, including minors, insane persons, and intoxicated persons. The common law of contracts and many state statutes protect persons who lack contractual capacity from having contracts enforced against them. The party asserting incapacity or his or her guardian, conservator, or other legal representative bears the burden of proof.”

 

Solution Description

Wk3 dq 1…What are the four elements necessary to form a contract? What is the effect of legal capacity on any of the three elements?  Define and discuss the concept of consideration as it relates to contract formation.

In order to define the four elements necessary to form a contract, we must first understand what a contract is. According to (Cheeseman, 2010), “A contract is an agreement that is enforceable by a court of law or equity. A simple and w