Contract Law Essentials: Definition and Validity
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Contract Definition and Validity Requirements
Definition of a Contract
A contract is an agreement between two or more parties which is legally enforceable when executed in accordance with requirements. An agreement will be enforced when the following essential elements exist:
- Offer and acceptance
- Intention to create legal relations
- Legality
- Possibility of performance
- Capacity of the parties
- Consent must be genuine
- Consideration must be present
All the elements must be present for a valid contract.
Remedies for Non-Performance (Schema)
Remedies available upon non-performance include:
- General remedies
- Cure by debtor of non-conforming performance
- Right to enforce performance
- Withholding performance
- Termination
- Grounds for termination
- Scope, exercise, and loss of