QUESTIONS AND VERIFIED ANSWERS
What is a Contract?
An agreement between two or more competent persons to perform (or refrain from) a
specific act.
- For consideration (both parties have to commit something or there is no contract, only
a gratuitous statement which is a non-enforceable promise)
- A contract is a legally enforceable promise (not all promises are legally enforceable)
What are the critical elements of a contract?
- Competent Parties
- Mutual Assent
- Consideration
What determines a competent party?
Have the capacity to understand what they are doing
What are some examples of incompetent parties that cannot legally enter into a
contract?
- Minors (<18)
- Mentally incompetent (currently, managing the elderly has become an important
competency issue!)
Mutual Assent
- There must be a meeting of the minds pertaining to all material terms of the
agreement. (Written is best)
- can be assumed if the parties actions are such that a reasonable person would
deduce agreement. (Assumed assent is fuzzy at best! DDS needs to control this.)
Consideration
- Some right, interest or benefit occurring by one party, for some forbearance, deterrent,
loss, or responsibility given or undertaken by the other.