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Summary of the 5 elements of a contract

Give a quick summary of the 5 elements of a contract and why they are so important.

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Use has been made of information at the following sites:
http://www.expertlaw.com
http://www.pbs.org/standarddeviantstv/transcript_business.html#whatis

A quick summary of the five elements of a contract and why they are so important.
A contract is a legally enforceable promise or set of promises.

Elements of a contract:

1) A "Meeting of the Minds" (Mutual Consent): The parties to the contract have a mutual understanding of what the contract covers. For example, if there is a contract for the sale of "mustang", and if the buyer thinks that he will receive a car, whereas the seller believes that he is entering into a contract to sell a horse, there is no meeting of minds and the contract will likely be held unenforceable.

2) Offer and Acceptance: The contract involves an offer (or more than one offer) to another party, who accepts the offer. For example, in a contract for the sale of a computer, the seller may offer the computer to the buyer for $2,500. The buyer's acceptance of that offer is a necessary part of creating a binding contract for the sale of the computer.

The offer is a proposal made by one person ...

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The solution gives a summary of the 5 elements of a contract and explains why they are important .

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