A contract is one of the most important official document when it comes to any deals, partnerships or commitments. A contract can also be called as a form of agreement which can either be written or verbal. In most of the cases, written contracts have more power and validity than verbal ones, and these are formed by mentioning various formal, professional or may be informal terminologies. There are many elements which are the must-haves while framing a contract. Contracts are formed between two parties with mutual consent and assent in the presence of a legal professional or court. Following are the most important elements of a contract with the absence of which the formal rules and definition of a contract may get violated.
1. Offer and acceptance
As you know that a contract is framed between two parties with their mutual consents; thus, there should be no question of force or coercion. Instead, there is a space for presenting an offer which is also known as agreement. Offer has a list of propaganda or conditions which are required to be thoroughly read by both the parties and then signed as an acceptance. If either of the two parties has any issue regarding the offer, he may raise a question and ask for a settlement or corrections. Any query related to the offer is liable to be answered or clarified by the presiding committee holding the contract. By accepting the offer, both the parties are liable to follow and maintain the terms and conditions of the agreement.
2. Mutual consent
A contract can never be one-sided and should follow the proposals and conditions of both the parties. Mutual understanding and consent is another main element of the contract, and the agreements are required to be read out loudly or allowed to be read by both the parties personally at the same time. If both are ready to sign, then only it becomes a contract.
The contract is not only a mutual consent or agreement between the two parties but also a legally supported document for any future assurance. The violation of a contract is liable to be presented in front of the court and can be a subject to penalization.
There is no space for uncertainty or any incomplete terms or sentences in a contract. Every words and sentence used in a contract should be defined clearly and is mandatory to be easily understood by the parties.