Deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily, and which agreement is enforceable in a court of law.
What are the Elements of a Contract?
Agreement between the parties
Between 2 or more competent persons
Supported by mutual consideration
Not necessarily in writing
Define Bargaining Power.
Legal assumption that parties to a contract are able to look after their own interests.
What are some examples of business contracts?
Supply purchase contracts
What are the advantages of a contract?
Permits both parties to rely on the terms they have negotiated and plan their business affairs accordingly.
Create binding promises that can be enforces in court.
If a dispute arises between the two parties, there are various options for dispute resolution.