Running Head: ELEMENTS OF A CONTRACT
Elements of a Contract
BUS 670 Legal Environments
ELEMENTS OF A CONTRACT
Introduction: Elements of a Contract
One or more than one promise that can be imposed legally is called a contract. The kinds
of contracts are: unilateral contract, bilateral contract, valid, unenforceable, and void contracts,
express and implied contracts. A contract which involves a promise from a single party is known
as unilateral promise (Mallor, Barnes, Bowers & Langvardt, 2010). For instance, when a gas
station gives you a card, a stamp is put on it when a fountain drink is purchased and when ten are
purchased, one is given away for free. In this case, it is the gas station who has promised. A
bilateral contact on the other hand involves the promise from both the parties. The contract is
created when both the parties have made their promises (Mallor, Barnes, Bowers & Langvardt,
2010). If an individual has promised to bake 100 cakes for a bakery and the bakery has promised
a salary of $600 monthly, it will be called a bilateral contract.
The economy is structured on the freedom to draw up a contract with a system of laws
that can be enforced. Contracts that are freely entered into are not always read carefully by the
signer. The signer may not be aware of the elements required to make the contract enforceable.
For example if the Fabulous Hotel hires you as head chef under a two year employment contract.
If you don’t read the contract carefully then you will not know that in the small print it says “The
below signed agrees not to work as a chef for another hotel in the same metropolitan area for a
period of two years after leaving our employer”. Therefore, you can’t work for another hotel in
the same metropolitan area for two years there are several items that makes this contract
enforceable (Sea Quist, G. and Coulter, K, 2012) The elements of a contract must include the
initial offer to name a few. An offer needs to have these three constituents: present intent to
contract, definiteness and the offer has to be conveyed to the offered. Present intent to contract
refers to the seriousness of the contract; if it is accepted both the parties will be part of a contract
(Mallor, Barnes, Bowers & Langvardt, 2010). This means that the acceptance of the offer must
be with the target of forming a contract.