Contract plays a vital role in aspects of agreement between parties for exchange of goods and services. Contracts in actual practice allow the parties of the agreement to become satisfied for their conduct of sales or exchange. The relationship between two parties for the terms and conditions of sales and exchange greatly depends upon the clauses and other main elements of the contract. Before determining a legally enforceable sales contract between two parties, it is important for the parties to develop understanding for the purpose of adherence to the contract. In this paper we shall discuss in brief regarding the elements of a legally enforceable sales contact.
Agreement
The obvious fact of a sales contract is that the parties of the contract must accept the condition completely. The acceptance of both the parties is necessary to make the contract adherent. The contract is greatly dependent on the acceptance of the offer being made from one party to another. Offer had been defined as a bargain to be defined and concluded in a deal. The element of agreement also indicates that the offer being made by the party is considered to be liable to control the terms and conditions to be accepted by the other party (Meiners, Ringleb, & Edwards, 2008).
Consideration
The second most important element of the legally enforced sales contract is referred to consideration of the promise or condition. In real terms, consideration is regarded as the substance leading into detriment which keeps a party away from some tasks or actions which are kept in consideration.
Legal capacity to Contract
Before signing a contract or agreeing on a consideration, it is important for parties to become able to sign a contact. The legal capacity of contract basically denotes the capacity of the parties to walk for the cause of adherence to the accepted legal contract. Parties have to prove that they are mentally able to run into a contact because mentally disturbed parties do not have the right to issue a contract (Meiners, Ringleb, & Edwards, 2008).
Lawful Subject Matter
No matter how basic the contract must be in nature, a contact must consist of lawful subject matter. Any contract is not legally enforceable until or unless the subject matter of the contact is lawful. Any contract that lacks the principle legal subject matter is likely to violate the state law in real terms resulting in inapplicability of the contract on the consideration accepted by two parties (Meiners, Ringleb, & Edwards, 2008).
Genuine Consent
The last and most important element of a legally enforceable contact is that the consent is genuine. Genuine of consent mentions that the party is completely aware of the information and conditions of the contracts. Parties can not accept any terms and conditions of the contract until or unless both have the complete knowledge of the contract. The unilateral mistakes are most likely to happen as the legal history beholds a great deal of cases of non adherence of the contact due to lack of genuine consent (Meiners, Ringleb, & Edwards, 2008).
Through the above analysis of the elements of a legally enforceable sales contract, it could be said that contracts are mainly legal in nature and are dependent upon some of the elements that are required to be followed by the parties before running into any contact for the agreement of bargained exchange.
Reference List
Meiners, R., Ringleb, P. & Edwards, F. (2008). The Legal Environment of Business. Ohio: Cengage Learning.