BUS 311
Understanding the Essentials of a Contract while Leasing an Apartment
The University of Arizona Global Campus
BUS 311: Business Law
Understanding the Essentials of a Contract while Leasing an Apartment
Many people can relate to the first time they move out of their parent house and live on
independently on their own. Some may say that this is the first be the biggest step into adulthood.
During this time, in most cases, you are no longer under your parent’s protection. You start to
realize that a lot of things come at expenses that are bound together by different contracts and
then you are faced with a decision of deciding what things are essential as you try to keep a
budget and stay on top on all your bills. At least, that’s what I’ve experienced when I first moved
out my parent’s house. At that moment, my main concern was figuring out where to stay. After a
little research, I decided an apartment would be the best fit for me. As soon as I called the
apartment complex to schedule a tour and requested more information, the first contract of my
adulthood life was being established. A contract is a legal agreement that is enforced between
two or more parties that deems to be valid when five crucial elements (offer, acceptance,
consideration, legality, and capacity) are satisfied (Rogers, 2012). Utilizing what I’ve learn so far
from University of Arizona Business Law class, I can now apply the five basic elements of a
valid contract with my first experience of leasing an apartment.
The Offer
Before getting into the offer, it is first mandatory to identify the parties involved in the
contract. The parties involved in the contract, in this case, the lease agreement, would be the
apartment complex (as a business) and myself. According to business professor, Jason Gordon
(2021), “An offer to contract must contains a specific promise from the person making the
, promise (offeror) and a specific demand of the individual receiving the offer (offeree)” (What
constitutes an offer to contract?, para. 1). Thus, the apartment complex would be identified as
the offeror or lessor, who is presenting me with a vacant apartment to reside in, and I would be
identified as the offeree or lessee, who is willing to move into the apartment at a reasonable and
agreeable monthly rate. Upon visiting and touring the prospective site, I exchange questions and
answer with the apartment staff such as rules, availability, number of bed & baths, services &
amenities, pricing & promotions, etc. These are all taken into account before filling out the
leasing application in order to form the part of the offer which be defined as the invitation for
each party to enter the contract (Rogers, 2012).
The Consideration
Leasing an apartment involves both parties to consider the negotiated terms and
conditions before going forward with the contract. This is the consideration part of the contract
in which anything of legal value asked for and received to enter the contract (Rogers, 2012). The
consideration would be the apartment (physical value) and the monthly rent price (monetary
value). Although the apartment complex (the offeror) is offering the lease out an apartment to me
(the offeree), I still had to remain interested in choosing the apartment complex as the primarily
location to reside and approve of the negotiated monthly leasing price whereas the apartment
complex would have to decide if I am eligible to lease the apartment base on my ability to pay
and credibility in which they will be able to determine after I completed the lease application and
pay the application fee which involves looking through my recent bank statements and pulling
my credit report.
The Acceptance
Once my application was approved and both parties decide to continue forward with the
leasing process, a lease agreement was specially created between the lessor (apartment complex)
and I (lessee). The written/typed lease agreement had the negotiated offer addressing which
apartment I am would be residing, agreed pricing to be paid per month, the term of the lease, and
Understanding the Essentials of a Contract while Leasing an Apartment
The University of Arizona Global Campus
BUS 311: Business Law
Understanding the Essentials of a Contract while Leasing an Apartment
Many people can relate to the first time they move out of their parent house and live on
independently on their own. Some may say that this is the first be the biggest step into adulthood.
During this time, in most cases, you are no longer under your parent’s protection. You start to
realize that a lot of things come at expenses that are bound together by different contracts and
then you are faced with a decision of deciding what things are essential as you try to keep a
budget and stay on top on all your bills. At least, that’s what I’ve experienced when I first moved
out my parent’s house. At that moment, my main concern was figuring out where to stay. After a
little research, I decided an apartment would be the best fit for me. As soon as I called the
apartment complex to schedule a tour and requested more information, the first contract of my
adulthood life was being established. A contract is a legal agreement that is enforced between
two or more parties that deems to be valid when five crucial elements (offer, acceptance,
consideration, legality, and capacity) are satisfied (Rogers, 2012). Utilizing what I’ve learn so far
from University of Arizona Business Law class, I can now apply the five basic elements of a
valid contract with my first experience of leasing an apartment.
The Offer
Before getting into the offer, it is first mandatory to identify the parties involved in the
contract. The parties involved in the contract, in this case, the lease agreement, would be the
apartment complex (as a business) and myself. According to business professor, Jason Gordon
(2021), “An offer to contract must contains a specific promise from the person making the
, promise (offeror) and a specific demand of the individual receiving the offer (offeree)” (What
constitutes an offer to contract?, para. 1). Thus, the apartment complex would be identified as
the offeror or lessor, who is presenting me with a vacant apartment to reside in, and I would be
identified as the offeree or lessee, who is willing to move into the apartment at a reasonable and
agreeable monthly rate. Upon visiting and touring the prospective site, I exchange questions and
answer with the apartment staff such as rules, availability, number of bed & baths, services &
amenities, pricing & promotions, etc. These are all taken into account before filling out the
leasing application in order to form the part of the offer which be defined as the invitation for
each party to enter the contract (Rogers, 2012).
The Consideration
Leasing an apartment involves both parties to consider the negotiated terms and
conditions before going forward with the contract. This is the consideration part of the contract
in which anything of legal value asked for and received to enter the contract (Rogers, 2012). The
consideration would be the apartment (physical value) and the monthly rent price (monetary
value). Although the apartment complex (the offeror) is offering the lease out an apartment to me
(the offeree), I still had to remain interested in choosing the apartment complex as the primarily
location to reside and approve of the negotiated monthly leasing price whereas the apartment
complex would have to decide if I am eligible to lease the apartment base on my ability to pay
and credibility in which they will be able to determine after I completed the lease application and
pay the application fee which involves looking through my recent bank statements and pulling
my credit report.
The Acceptance
Once my application was approved and both parties decide to continue forward with the
leasing process, a lease agreement was specially created between the lessor (apartment complex)
and I (lessee). The written/typed lease agreement had the negotiated offer addressing which
apartment I am would be residing, agreed pricing to be paid per month, the term of the lease, and
