the 8 Valid elements of a contract

• the offer - made when one person asks another to enter a deal with them - the terms of the offer must be set out clearly completely and without conditions attached
• offers can be withdrawn at any stage before it is accepted
• Acceptance - the person that the offer was given to agrees to the terms of the deal
• a counter offer is a rejection of the original offer - the original offer is void
• consideration - the payment one person gives to another person as part of the agreement - must be real and valuable and both sides must benefit in some way
• intention to contract - both parties are of the idea that they mean it to be a contract and understand the consequences of not fulfilling their side
• family agreements are not really legally binding whereas business contracts are
• capacity to contract - this states the legal ability for someone to enter a contract
• everybody have the ability to contract except the following - those under 18, the mentally incapacitated due to alcohol, drugs or insanity, diplomats and company directors
• consent to contract - both parties must give their real permission to enter the contract with an awareness of all elements of the contract - they must not be under duress
• legality of form - means that contracts must take a certain form depending on the contract - eg. written
• legality of purpose - contract must only be used for legal purposes