Elements Of a Binding Contract By: Alexander Perchekly

There are 4 basic parts necessary to make a contract enforceable.

1. Competent parties

The parties to the agreement have to be of sound mind and legal age.

2. Legal in purpose

Speaks for itself. The courts won’t enforce agreements which are not legal.

3. Offer and Acceptance

An offer with necessary terms was made and a party accepted that offer.

4. Consideration

This usually applies to something of value exchanged between the parties. In an insurance agreement, consideration would include premium payments and a promise to abide by the policy conditions.

If you have any questions, feel free to contact Alexander Perchekly

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