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    Why should business people know the elements of a contract?

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    What are the elements of a valid contract? Why is it important for an accountant or businessperson to know this?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:09 pm ad1c9bdddf

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    Valid elements of a contract include

    1. An offer
    2. An acceptance
    3. Consideration
    4. Promise to perform or pay
    5. A legal purpose
    6. Between competent people
    7. Free will

    Note that a contract does not have to written to be enforceable. State laws called the 'Statutes of Frauds' list the ...

    Solution Summary

    The solution first lists seven elements of a valid contract. Then there are six reasons listed for why it is important for business people to be able to understand and apply the concepts.