How to Create an Agreement

Signing a contract is one factor indicating mutual agreement.

Agreements need at least three things in order to be "binding:" an offer, acceptance and consideration. "Consideration" refers to things that are bargained for value; there must be some detriment to both parties. One party may agree to pay another (thereby giving up the amount of money) and in return, the other party agrees to do something (thereby giving up his time). If an agreement is binding, either party can seek legal recourse to enforce the agreement. Agreements can be oral or written. Written agreements help avoid disputes in the future.

Instructions

1. Extend an offer to someone. The offer must be clear and definite in its terms. For instance, you could say "I will pay you $50 if you wash my car tomorrow."

2. Receive acceptance of the offer. After making the offer, someone must accept the terms of your offer and agree to do what is asked.

3. Write down the terms of the agreement if necessary. If the agreement is particularly complex, you may want to create a contract and write down all the terms and conditions of the agreements.

4. Perform the agreement. In the example above, if the person who accepted your offer washes your car tomorrow (thereby performing his end of the bargain), complete the agreement by doing what you promised (paying the $50 to that person).

References

• Expert Law: Contract Law, Elements of a Contract
• Window on State Government, Texas: Elements of a Contract