BUS 206 Project Three – Contract Law Joseph R. Devine, Jr. Southern New Hampshire University Professor Shaun M. Koenig April 18, 2021

Bus 206 Project Three – Contract Law 2 There are four elements to a contract: offer, acceptance, consideration, and capacity. The four elements must be present for a valid contract to exist (Martella, 2013). The first step towards a contract is the offer. Typically, a party offers to perform a service, sell a product, trade, or conduct other business ventures. An offer is valid when it is severe and not revoked. We can't be said in jest, or the offeror cannot withdraw the offer. Secondly, we have acceptance when the proposal is agreed to by the party it was presented to. The next element of a contract is a consideration. This is when we have an exchange of typically money. Contractual capacity is the third element, which is the legal ability to enter into the legal biding agreement. The parties need to understand they are entering into a contract. A final element is a lawful object identifying if the contract is legally binding. To be legally binding, the contract cannot be illegal or against public policy. (Ashley, 2017)