Contract Laws

A contract in its most basic form is an agreement between two or more persons for an exchange of something of value. The agreement portion of the contract essentially is a promise to fulfill expectations mutually agreed upon and how those expectations are met, for example, "If you do this for me, I will give this to you."

History

Contracts are as old as language itself attempting to quantify social interactions, such as intent, within a defined set of expectations. Oral contracts were the first of such attempts within preliterate society.
What defines advanced societies from primitive ones is based on how well a society enforces the integrity of a contract by means of providing remedies to victims involved in unfulfilled promises, otherwise known as a breach of contract."
The portion of society acting as a third party responsible for determining if a breach of contract has occurred is known as the judicial system.
There are five required portions that make up a valid or "enforceable" contract.

Offer and Acceptance

Offer and acceptance is the first portion of a contract defining the framework in which two are more parties agree, and are obligated, to perform. The legal term "offer and acceptance" denotes exactly what the two words imply, which is an exchange of some sort, for example, John makes an offer to Jennifer, Jennifer accepts the offer; hence the legal term Offer and acceptance.

Consideration

Consideration is a legal term and the second portion of a contract attempting to define the value of that which is being exchanged. This price of a promise can come in the form, but is not limited to, an exchange of a service or a monetary payment.

Legally Binding

The third portion is the binding properties of a contract that illustrates the agreement of all parties involved, meaning they agree to be obligated to perform all required functions laid out in a contract resulting in a fulfilled promise.

Capacity

The forth portion of a contract defines if a person(s) can lawfully enter a contractual agreement in the first place. If the contract doesn't fulfill capacity guidelines, then the contract is deemed unenforceable. For example, despite how well a contract is structured, children cannot enter a legally binding contract without the consent of their guardians; it is beyond their capacity to enter such an agreement.

Formalities and Writing

The fifth portion of a contract involves appropriate language used to define the terms and conditions of an agreement that both parties understand fully what's expected of them. Clarity is essential here. Ambiguous language can result in a contract that's unenforceable, despite any signature or agreements ensued.