Valid Contract Formation for the Exchange of Services

Subject: Law
Pages: 1
Words: 266
Reading time:
< 1 min

For a formation of a contract to be valid, elements such as acceptance, offer, consideration, capacity, and intention to create legal relation ought to be observed. The success of many commercial transactions relies on legally binding contracts. The creation of legally binding contracts enables a party member to sue the other party members when the contractual provisions are not fulfilled. It is also crucial for the parties involved to have not only offers but also to accept each other and the result of the contract.

It is evident that there will be no contract if the offer presented by the parties involved in the contract is not accepted. Thus, the parties involved in the contract are obliged to accept offers orally or in writing. In making promises, parties involved also need to consider detriments that may be encountered. The contract between Henrietta and Geekulos needs to observe the rule of offer and acceptance. They also need to have agreements on the terms of their contract. It will also be crucial for them to ensure that their promises are legally binding.

The law does not consider non-necessity contracts made by persons under the age of 18 to be valid. Thus, the contract between Bighair and Greg was voidable. Bighair has no remedy for starting the contract because it does not involve necessities. The contract is over the service on a software upgrade which is not considered a necessity. Greg has no remedy against Bighair because he entered into a void contract.