Clm Contract Definition
A contract is an agreement between two or more parties that creates legally binding obligations. A contract can be written, oral, or implied. The term ‘contract’ often refers to a written agreement, but it can also refer to an oral agreement or an implied agreement.
A contract is formed when one party makes an offer and the other party accepts the offer. The offer must be clear and unambiguous, and the acceptance must be unconditional and unequivocal. For a contract to be valid, there must be a meeting of the minds, or an offer and acceptance.
There are four essential elements of a contract: offer, acceptance, consideration, and intention to create legal relations. An offer is an expression of willingness to contract on certain terms, made with the intention that it will become binding as soon as it is accepted by the offeree. An acceptance is an unqualified assent to the terms of an offer. Consideration is something of value given by each party to the other in exchange for their promises under the contract. Intention to create legal relations means that the parties intend for their agreement to be legally binding.
If one of these elements is missing, the contract is voidable. A voidable contract is a contract that can be canceled by one of the parties without breaching the contract or suffering any legal consequences. The most common reason for a contract to be voidable is lack of capacity on one of the parties’ part. Other reasons include misrepresentation, mistake
