We may not know it, but most of us have encountered contract agreements, whether it is in writing or in verbal agreement. Did you know that a simple task such as turning on the lights in your house is doing your end of the contract with the electric company? A contract is very important in many transactions. Other than it ensures that you get the other part of the bargain, it makes sure that what it contains will be done.
There are contracts for marriages, for exchange of services or goods and so on. But what makes a contract valid?Do a few words here and signatures there enough to call a contract valid? A contract can be considered valid if it contains features or elements that make it enforceable and legally binding. According to Steinberger (2007), a contract’s purpose is to outline the agreement so that the “object” is completed while at the same time preventing disputes. The features that make a contract valid are the consent and agreement of parties (offer of one party and acceptance of another), a lawful object and consideration.Looking at the example of a contract, the signatures of both parties indicate that they both give consent to and agree with the contract.
Moreover, their consent must be mutual, free and communicated to each other (Steinberger, 2007). A lawful object refers to something that is agreed to. In this case, Party A must date someone older to be able to get the $100. The lawful object should be possible, definite and lawful. Consideration, on the other hand, refers to the notion that both sides of the parties must gain something out of their agreement.
As is shown in the contract, Party A agrees to date someone way older and Party B will pay him $100 upon the accomplishment of the agreement. However, if Party B does not promise to pay, he cannot be angry at Party A for not doing what they agreed upon because Party B did not show any consideration. In the same way, Party A cannot complain if Party B does not pay him because he did not date someone older than him. If all goes well, Party A gets the money and Party B gets satisfaction from such a deal.