When it comes to business, the word ‘contract’ is usually thrown around a lot. But what exactly is a contract? A contract is simply an agreement between two or more parties. This agreement can be made orally, in writing, or even through conduct. It doesn’t matter how the agreement is reached, as long as all parties involved agree to the terms.
There are three main elements that must be present in order for a contract to be valid: offer, acceptance, and consideration. The offer is the initial proposal made by one party to another. The acceptance is when the second party agrees to the terms of the offer. And finally, consideration is what each party brings to the table – this could be money, goods, services, etc.
Once all three of these elements are present, a contract is considered legally binding and both parties are obligated to uphold their end of the deal. If one party fails to do so, they may be held liable in a court of law.
So there you have it! The next time you hear someone talking about contracting, you’ll know exactly what they’re referring to.