contract education

These are the components that EVERY contract must have.  If any of these components are missing, the contract may be deemed void or unenforceable. 

1. OFFER -  One party must present an offer, which clearly outlines the terms, goods, services, or obligations they are proposing to provide. The offer must be specific and communicated to the other party. 
2. ACCEPTANCE -  The other party must accept the offer exactly as it is presented. Acceptance can be communicated verbally, in writing, or through actions. Any changes to the offer would be considered a counteroffer, not acceptance. 
3. CONSIDERATION -  Each party must exchange something of value, known as consideration. This can be money, services, goods, or a promise to act (or not act) in a certain way. Without consideration, the contract is not enforceable. 
4. MUTUALITY - Both parties must have a clear understanding of the contract’s terms and agree to them freely and willingly. There should be no fraud, duress, or undue influence affecting the consent of either party. 
5. COMPENTENCY - Both parties must have the legal capacity to enter into a contract. This means they are of legal age (typically 18 or older) and of sound mind. Those who are mentally incapacitated, intoxicated, or minors usually cannot legally enter into a binding contract. 
6. WRITTEN -  While a contract doesn’t always have to be in writing, doing so offers protection and clarity for both parties.   Under the Statute of Frauds, certain types of contracts are required by law to be in writing to be enforceable. 
7. LEGALITY -  The subject matter of the contract must be legal. Contracts that involve illegal activities, such as selling illegal drugs or committing a crime, are not enforceable in court.  Both parties must intend for the contract to have legal consequences. This means they understand that they are entering into a legally enforceable agreement, and they are prepared to face legal action if they fail to fulfill their obligations. 

Corporations often push to get consumers into contracts because it locks in benefits and protections for the company, ensuring predictable profits and control. Here’s why they can’t wait to secure your signature.... 

Once you sign a contract, you're legally bound to fulfill your financial obligations, whether it's through ongoing payments, subscription fees, or long-term service agreements. This provides steady income for the corporation. 

A signed contract gives corporations legal protection. If you break the terms, they can enforce penalties or take legal action to recover damages, giving them leverage if things go wrong. 

Some corporations structure contracts with hidden fees, penalties, or clauses that work in their favor. By locking you in, they can enforce these terms, often to the consumer’s surprise later on.  

Once you're in a contract, the company can control what you pay and for how long. This means even if market rates change or you find a better deal elsewhere, you're stuck paying the agreed amount for the duration of the contract. 

 The corporation typically drafts the contract, giving them the upper hand in setting the terms and conditions. Most people don’t negotiate or read the fine print thoroughly, allowing companies to dictate the rules.