You have been assigned to a firm committee and the committee chairperson explains to you that the company has some excess computer equipment that it is going to sell to the call center. The equipment is used, and consists of five monitors, five printers, and five desktop computers. The call center company is going to pay your company $2,000.00 for the equipment in four monthly installments.
Your chairperson has asked you to draft a simple contract that incorporates these details. Moreover, as you are the newest member of the committee, the chairperson wants to evaluate your knowledge regarding contracts and asks you to draft a memorandum explaining why the contract you drafted (if it is accepted by the call center) is valid.
Memo- Elements of a valid contract:
The contract being drafted for the delivery of equipment to the call centers contains all the elements of the valid contract. First of all, the contract is being entered between two competent parties, i.e., our company and the call center. Both the firms are legally established entities.
Secondly, one of the major requirements of a valid contract is that parties to a contract must exchange something of value. In our scenario, we are giving $2000 worth of equipment to the other party, i.e., call center in exchange of money. Therefore, our contract meets this requirement as well.
Further, another major element of a valid contract is mutual consent or mutual understanding of what the contract ...
This solution discusses the key elements of a valid contract in 464 words.