We all know what a contract and contract law is, but most of us have doubts on what a valid contract is? Actually, the concept is not as hard as it looks like and the same goes for someone who thinks of it as a rather easy concept.
A valid contract is basically a written or oral document that serves as the mediator of terms and conditions between two or more than two parties. A valid contract is recognized by the law of the country and any breach or discontinuation without any approval beforehand can cost the person in the act, a punishment as per specified by the Law and judicial system.
Several factors influence the being of a valid contract. The five elements of the valid contract give it a better grip. So, the 5 elements that bind up a legal contract are:
Offer: A valid contract gets the title and recognition only when it is started as an offer that is legal in terms of Law and Judicial power of the country. An offer is something that is a prospect which is made by an offeror to an offeree
Acceptance: As the term suggests, Acceptance is the state when the offeree or the person who is on the other side of the offer accepts the terms and conditions of the prospect and agrees to work as per the needs and requirements of the offeror.
Consideration: A contract is only said to be valid if there is some consideration involved which holds financial aspect attached to it. Both the parties should accept this, and it is basically a remuneration that is provided by the offeror for the services that are provided by the offeree in return, and it can be both for being in the state of productive or stationary.
Capacity: Another Important aspect to look upon as to judge whether a contract is valid or not is to check if the parties involving in the contract are competent or not. One of the most common traits they should carry is the minimum age limit and mental capability.
Intent: A contract is said to be valid when both parties have the intent to carry out their obligations without any action of breach.
So, this is all the concept of a valid contract. It is fairly simple and knowing the topic is never a bad thought.