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Contract law

"The purpose of contract law is to give effect to the reasonable expectations of the parties to a contract." Discuss this observation in terms of the five elements that are required for the creation of a legally binding contract.

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In terms of a legally binding contract, the five elements include:

1. There must be an offer and acceptance of the contract. Therefore, each party has a reasonable expectation of what the contract entails, including terms of the offer and acceptance. T"he agreement process involves one party offering terms and conditions that are either accepted or rejected by the other party. If the other party changes any term or condition of the offer, then the offer becomes a counter-offer. At this point, each party negotiates the terms and conditions of the offer until they have a meeting of the minds".
Source: http://www.allbusiness.com/legal/contracts-agreements/731-1.html

2. Each party must be clearly consenting to the contract. Each party should be entering into the contract freely, without any coercion by another party to enter into the contract. Each ...

Solution Summary

This solution provides an explanation of five elements that are required in contract law to make a contract binding.