Legal Elements of a Business Contract Coursework

Legal Elements of a Business Contract - Coursework Example Consideration is the third element in contracts and is denoted as a valuable item or cash, which is presented so as to make the contract more binding. For example, a seller may require a buyer to present the payments for goods if they are to be delivered. The payment is considered as a consideration in this case. However, the buyer does not need to buy the full amount. The consideration is only given if there is a promise made (Boundy 2010, p. 64). In addition, the law requires that both parties should have an intention of getting into a contract. They must exhibit the awareness that their agreement is to be bound by law. The contract must be made by people out of their free consent without any form of coercion, fraud, mistake, misrepresentation or undue influence. The individuals must be in their right capacity to make contracts. This refers to the soundness of mind, being of the right age as well as individuals not disqualified by law to make any contract. There must be a lawful object of the contract as well as the certainty of the contract. The law also considers the possibility of performance surrounding the lawful object which is the subject of the contract. If it is something that cannot happen, then the law cannot enforce such contracts. Some contracts require legal formalities in form of writing (Boundy 2010, p. 67). Bilateral contracts are made by two parties after the agreement of terms and conditions while unilateral contracts only involve one party who presents the terms as well as the offer. Unilateral contracts are commonly applied by individuals looking for lost items who offer rewards to individuals who find them. In unilateral contracts, only one person is bound by the law (Boundy 2010, p. 94).