Contract Creation Definition
A contract is an agreement between two or more parties that creates obligations that are enforceable by law. A contract can be either written or oral, and it can be either express or implied. The key element of a contract is the existence of an offer by one party and the acceptance of that offer by another party.
The first step in creating a contract is to identify the offer. The offer must be clear and unambiguous, and it must be made with the intention of creating a legally binding agreement. Once the offer has been made, the other party has the opportunity to accept or reject it. If the offer is accepted, then a contract has been formed.
The next step is to determine whether there is consideration, which is something of value given by each party to the other in exchange for their promise to perform under the terms of the contract. Consideration can be monetary, like a payment or fee, or it can be something else of value, like goods or services.
Once consideration has been established, the parties must agree on all relevant terms and conditions of the contract. These terms can be negotiated and agreed upon before or after the formation of the contract. However, if they are not agreed upon beforehand, they will need to be spelled out in detail in order for the contract to be legally binding. Finally, all contracts must be signed by both parties in order to take effect.
