Different elements of a contract Assignment Example | Topics and Well Written Essays - 500 words

Different elements of a contract - Assignment Example The next element of a contract is the acceptance. An acceptance is â€Å"an expression of absolute and unconditional agreement to all the terms set out in the offer. It can be oral or in writing. The acceptance must exactly mirror the original offer made†(Smithies, 2007). The offer should be accepted without any conditions. If there are any changes, modifications or additions in the original offer made, it is considered as a counter-offer which must also be accepted by the offeror. A counter-offer cannot be considered as an acceptance. An example of this is when the offer price for a car is $20,000 and the offerer gets back at the offeror and asks that the price instead be $18,500. The legal consideration is that thing of value which the parties to a contract must receive(Smithies, 2007). A contract will only be binding if it is supported by something of value. For a contract to be valid, the persons entering into a contract should have the legal capacity to do so. This means that they should not have any mental impairment; they must be of legal age, i.e. they are not minors and must not be prisoners(Fitzroy Legal Service Inc., 2010). For example, a person who is suffering from autism cannot enter into a contract with another person because of his mental impairment. He might be entering into an agreement which he does not fully understand, which is not fair for him and the other party.